Collins Company had the following partial balance sheet and complete income statement information for 2010: 
The industry average DSO is 30 (360-day basis) .Collins plans to change its credit policy so as to cause its DSO to equal the industry average,and this change is expected to have no effect on either sales or cost of goods sold.If the cash generated from reducing receivables is used to retire debt (which was outstanding all last year and which has a 10% interest rate) ,what will Collins' debt ratio (Total debt/Total assets) be after the change in DSO is reflected in the balance sheet?
Definitions:
Nominal Interest Rate
The interest rate before adjustments for inflation, representing the raw interest percentage that lenders charge borrowers for the use of money.
Inflation Rate
The speed at which the aggregate price level for goods and services goes up, undermining the power of purchasing.
Nominal Interest Rate
The rate of interest before adjustments for inflation; the stated rate on a loan or investment.
Real Interest Rate
The Real Interest Rate is the nominal interest rate adjusted for inflation, reflecting the true cost of borrowing or the true return on savings.
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