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If the Industry Average Days Sales Outstanding Is 65 Days

question 61

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If the industry average days sales outstanding is 65 days and a firm with sales of $1,034,550 has receivables of $268,700, how much in interest expense could the firm save if the receivables turn over as quickly as the industry average and the cost of carrying the receivables is 9%?


Definitions:

Genetic Diversity

the range of genetic variation present in a population or species, essential for its adaptation, survival, and evolution.

Environmental Changes

Alterations to the natural environment caused by natural phenomena or human activities, impacting ecosystems and biodiversity.

Founder Effect

A genetic phenomenon that occurs when a new colony is started by a few members of the original population, leading to reduced genetic variation.

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