Data on Nathan Enterprises for the most recent year are shown below, along with the days sales
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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.
| Sales | $110,000 |
| Accounts receivable | $16,000 |
| Days sales outstanding (DSO) | 53.09 |
| Benchmark days sales outstanding (DSO) | 20.00 |
Expert Answer:
Related Book For 
Fundamentals of Cost Accounting
ISBN: 978-1259565403
5th edition
Authors: William Lanen, Shannon Anderson, Michael Maher
Posted Date:
