Question: If the company reduces its DSO without seriously affecting sales, what effect would this have on its cash position (1) in the short run and
If the company reduces its DSO without seriously affecting sales, what effect would this have on its cash position (1) in the short run and (2) 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?
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If customers pay their bills sooner this will increase the compan... View full answer
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