Viera Industries has net sales of $200,000, accounts receivable of $18,500, and 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?
A) $241.45
B) $254.16
C) $267.54
D) $296.44

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The Answer of Viera Industries has net sales of $200,000, accounts receivable of $18,500, and 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?
A) $241.45
B) $254.16
C) $267.54
D) $296.44

Viera Industries Has Net Sales of $200,000, Accounts Receivable of $18,500