Data on Nathan Enterprises for the Most Recent Year Are

question 13

Multiple Choice

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. $$\begin{array} { l r } \text { Sales } & \$ 110,000 \\\text { Accounts receivable } & \$ 16,000 \\\text { Days sales outstanding (DSO) } & 53.09 \\\text { Benchmark days sales outstanding (DSO) } & 20.00\end{array}$$

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

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Definitions:

Nash Equilibrium

A concept in game theory where no player can benefit by unilaterally changing their strategy if the strategies of the others remain unchanged.

Dominant Strategy

A strategy in game theory that provides the best outcome for a player, regardless of the strategies chosen by other players.

Monopoly Outcome

The result or situation where a single company or entity has exclusive control over a particular commodity or service, often leading to higher prices and lower quality.

Nash Equilibrium

A concept in game theory where each player's strategy is optimal, given the strategies of other players, resulting in a situation where no player can benefit by changing strategies unilaterally.