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

question 23

Multiple Choice

Aziz 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:

Stokely Carmichael

Stokely Carmichael was a prominent Trinidadian-American civil rights activist known for his leadership in the Student Nonviolent Coordinating Committee (SNCC) and for popularizing the term "Black Power" in the 1960s civil rights movement.

Guinea

A country on the west coast of Africa, known for its rich natural resources, including bauxite and gold, along with its cultural diversity.

African Nationalists

Individuals or groups in Africa advocating for national independence and self-governance, especially during the 20th century decolonization period.

Cesar Chavez

An American labor leader and civil rights activist who co-founded the National Farm Workers Association, leading struggles for the rights of agricultural workers.