A Firm Has a Days Receivables Outstanding (DRO)of 50 Days

question 23

Multiple Choice

A firm has a Days Receivables Outstanding (DRO) of 50 days. Its annual sales outstanding are $3.6 billion. If it could reduce its DRO to 36 days, how much cash could it free up for other
Investments? Assume a 360-day year.

• A)$360,000,000
• B)$370,400,000
• C)$140,000,000
• D)$222,220,000

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Definitions:

Catholic Male Monks

Members of a male religious community within the Catholic Church who live under vows of poverty, chastity, and obedience.

Implementation Intentions

Mental rules reminding us to respond to a cue in the situation with a goal-directed behavior.

Exercise Habits

Regular patterns or routines of physical activity maintained over time for the purpose of improving or maintaining one's fitness or health.

Gender Differences

The distinctions in behaviors, preferences, roles, or biological attributes typically associated with being male or female.