Data on Nathan Enterprises for the most recent year are shown below, along with the days sales outstanding of the firms against which it benchmarks. The firm's new CFO believes that the company could reduce its receivables enough to reduce its DSO to the benchmarks' average. If this were done, by how much would receivables decline? Use a 365-day year.
$\begin{array}{lr}
\text { Sales } & \$ 110,000 \
\text { Accounts receivable } & \$ 16,000 \
\text { Days sales outstanding (DSO) } & 53.09 \
\text { Benchmark days sales outstanding (DSO) } & 20.00
\end{array}$

Question

Data on Nathan Enterprises for the most recent year are shown below, along with the days sales outstanding of the firms against which it benchmarks. The firm's new CFO believes that the company could reduce its receivables enough to reduce its DSO to the benchmarks' average. If this were done, by how much would receivables decline? Use a 365-day year. 
$\begin{array}{lr}
\text { Sales } & \$ 110,000 \
\text { Accounts receivable } & \$ 16,000 \
\text { Days sales outstanding (DSO) } & 53.09 \
\text { Benchmark days sales outstanding (DSO) } & 20.00
\end{array}$

Quizplus · Accepted Answer

11ea1766_98d3_2a43_80be_0d15d3d22ba6_TB1228_00

Data on Nathan Enterprises for the Most Recent Year Are