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Garcia Industries has sales of $200,000 and accounts receivable of $18, 500, and it gives its customers 25 days to pay. The industry average DSO
Garcia Industries has sales of $200,000 and accounts receivable of $18, 500, and it gives its customers 25 days to pay. The industry average DSO is 27 days, based on a 365 day year. If the company changes its credit and collection policy sufficiently to cause its DSO to fall to the industry average, and if it earns 8.0% on any cash freed-up by this change, how would that affect its net income, assuming other things are held constant? $296.44 $267.54 $254.16 $241.45 $281.62 Which of the following statements is NOT CORRECT? "Going public" establishes a firm's true intrinsic value and ensures that a liquid market will always exist for the firm's shares It is possible for a firm to go public and yet not raise any additional new capital for the firm itself
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