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Newtown Co,'s CFO has decided to take a closer look at the company's credit policy. Newtown Co. has annual sales of $402.8 million, and it

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Newtown Co,'s CFO has decided to take a closer look at the company's credit policy. Newtown Co. has annual sales of $402.8 million, and it currently has an accounts recelvable balance of $47.6 million. The first step in analyzing the firm's credit pollcy is to determine its days sales outstanding (DSO). Based on this information, Newtown Co.is DSO is . (Note: Use 365 days as the length of a year in all calculations. Do not round intermediate calculations. Round your final ansh place.) The average DSO for Newtown Co.'s industry is: Iming that its sales stayed the same, what would be Newtown Co.'s recelvables balance If it maintained the industry average DSO? (Not_ I intermediate calculations. Round your final answer to the nearest whole dollact) Newtown Co.'s Cro thinks that the company has not donervery good job of enforcing its credit policy. The CFO believes that if the company were to better enforce its credit policy, it would reduce its DSO to 30 days; however, this will cause Newtown Co. to lose 7% of its sales revenue. What would Newtown Co.s expected accounts recelvables balance be if it decides to tighten its credit policy? (Note: Do not round intermediate calculations.) 538,486,713 $26,170,965 $27,710,433 530,789,370 5. Accounts receivable Newtown Co.s CFO has decided to take a closer look at the company's credit policy. Newtown Co. has annual sales of $402.8 million, and it currentiy has an accounts recelvable balance of $47.6 million. The first step in analyzing the firm's credit policy is to determine its doys sales outstanding (DSO). Based on this information, Newtown Co.'s DSO is (Note: Use 365 days as the length of a year in all calculations. Do not round intermediate calculations. Rlound your final answer to one decimal place.) The average DSo for Newtown Co,'s industry is 53.9 days. Assuming that its sales stayed the same, what would be Newtown Co.'s receivables balance If it maintained the industry averoge DSo7 (Note: Do not round intermediate calculations. Round your final answer to the nearest whole doliac.) 3 thinks that the company has not done a very good jab of entorcing its credit policy. The CFO believes that if the company were to Thidit policy, it would reduce its DSO to 30 days; however, this will cause Newtown Co. to lowe 7% of its sales revenue. What would bected accounts recelvebles balance be if it decides to tighten its credit policy? (Note: Do not round intermediate calculations.) 6,713 3,965 $27,710,433 530,789,370

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