Industries Has Sales of $100,000 and Accounts Receivable of $11,500

question 60

Multiple Choice

Industries has sales of $100,000 and accounts receivable of $11,500, and it gives its customers 30 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) $267.34
• B) $281.41
• C) $296.22
• D) $311.81
• E) $328.22

---

Definitions:

American Women

Refers to female residents of the United States and their roles, rights, and experiences throughout the country's history.

American Way of Life

A phrase referring to the lifestyle and cultural norms prevalent in the United States.

Civil Rights Movement

A pivotal series of events and efforts, primarily during the 1950s and 1960s in the United States, aimed at ending racial segregation and discrimination against African Americans and securing legal recognition and federal protection of the citizenship rights enumerated in the Constitution and federal law.

Reconstruction

The period following the American Civil War (1865-1877) during which the United States attempted to address the inequities of slavery and integrate formerly enslaved people into society and politics.