Data on Nathan Enterprises for the Most Recent Year Are

question 38

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

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

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Definitions:

Critical Value

A statistical threshold value used in hypothesis testing to determine whether to reject the null hypothesis, based on the desired level of significance.

Contingency Table

A table used in statistics to show the frequency distribution of variables, and analyze the relationship between categorical variables.

Qualitative Variables

Variables that categorize or describe attributes or properties of objects, individuals, or conditions, without using numerical values.

Contingency Table

A table used in statistics to display the frequency distribution of variables, helping in analyzing the relationship between different categorical variables.