On Shick Inc A)$8,078
B)$8,975
C)$9,973
D)$10,970
E)$12,067

question 70

Multiple Choice

on Shick Inc.for 2008 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.
$$\begin{array}{l}\text { Project Data }\\\begin{array} { | l | r | } \hline \text { Sales } & \$ 110,000 \\\hline \text { Accounts receivable } & \$ 16,000 \\\hline \text { Days sales outstanding (DSO) } & 53.09 \\\hline \text { Benchmark days sales outstanding (DSO) } & 20.00 \\\hline\end{array}\end{array}$$

• A)$8,078
• B)$8,975
• C)$9,973
• D)$10,970
• E)$12,067

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Definitions:

Legal

Pertaining to the system of rules and guidelines that govern behavior and practices within a society.

Conditioned Reinforcer

A stimulus that gains its reinforcing power through its association with a primary reinforcer; also known as a secondary reinforcer.

Primary Reinforcer

An innately reinforcing stimulus like food or drink, which does not require learning to become pleasurable or satisfying.

Negative Reinforcer

An aversive stimulus whose removal following a behavior increases the likelihood that the behavior will occur again in the future.