k.) Barnes knows that SKI sells on the same credit terms as other firms in its industry. Use the ratio to explain whether SKI's customers pay more of less promptly than those of its competitors. If there are differences, does that suggest, SKI should tighten or loosen its credit policy? What four variable make up a firm's credit policy, and in what direction should each be changed by SKI?

l.)Does SKI face any risks if it tigethens its credit policy?

m.) If the company reduces its DSO without seriously affects sales what effect would this have on its cash position in the short run? in the long run? Answer in terms of the cash budget and the balance sheet, What effect should this have on EVA in the long run?