Collins Company Had the Following Partial Balance Sheet and Complete

question 36

Multiple Choice

Collins Company had the following partial balance sheet and complete income statement information for last year: 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?

• A) 33.33%
• B) 45.28%
• C) 52.75%
• D) 60.00%
• E) 65.71%

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Definitions:

Learning Perspective

A psychological viewpoint that emphasizes the effects of experience on behavior, focusing on how individuals learn and adapt through their interactions with the environment.

Biological Perspective

This perspective in psychology is a way of looking at human problems and actions by focusing on biological factors, including genetic, neurological, and physiological processes.

Sexually Abused

Having been subjected to unwanted or inappropriate sexual behavior by another person.

Psychoanalytic Perspective

A theory of psychology founded by Sigmund Freud that emphasizes the role of unconscious processes and childhood experiences in shaping behavior and personality.