Heaton Corp

question 44

Multiple Choice

Heaton Corp.sells on terms that allow customers 45 days to pay for merchandise.Its sales last year were $425,000, and its year-end receivables were $60,000.If its DSO is less than the 45-day credit period, then customers are paying on time.Otherwise, they are paying late.By how much are customers paying early or late? Base your answer on this equation: DSO − Credit period = days early or late, and use a 365-day year when calculating the DSO.A positive answer indicates late payments, while a negative answer indicates early payments.

• A) 6.20
• B) 6.53
• C) 6.86
• D) 7.20
• E) 7.56

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Definitions:

Closed Systems

Systems that do not interact with or exchange matter or energy with their environment, typically applied in theoretical models or controlled conditions.

Founder Syndrome

A situation where an organization struggles with decision-making, adapting, or organizational growth due to the overpowering influence of its founders.

Management Style

A method or approach a manager takes to fulfill their responsibilities, including how they plan, organize, make decisions, delegate, and manage employees.

Blake And Mouton

Referencing the Blake and Mouton Managerial Grid, a model used to evaluate management styles based on concern for people vs. concern for production.