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Pejamcelik Industries Industries has sales of RM320,000 and accounts receivable of RM48,000, and it gives its customers 30 days to pay. The industry average DSO
Pejamcelik Industries Industries has sales of RM320,000 and accounts receivable of RM48,000, and it gives its customers 30 days to pay. The industry average DSO is 28 days, based on a 365 day year. If the company changes its credit and collection policy sufficient to cause its DSO to fall to the industry average, and if it earns 7.5% on any cash freed-up by this change, how would that affect the firm's net income, assuming other things are held constant
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