Data on Shick Inc

question 56

Multiple Choice

Data on Shick Inc.for 2013 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. Data on Shick Inc.for 2013 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. A) $ 8,078 B) $ 8,975 C) $ 9,973 D) $10,970 E) $12,067

Definitions:

Maturity

The date on which the principal amount of a loan, bond, or other financial instrument is due to be paid in full.

Semi-Annual Interest

Interest payments made two times a year on a loan or investment.

Annual Interest

The amount of interest to be paid or earned over a year, often related to loans, savings, or investments.

Current Monetary Liability

A short-term financial obligation that is expected to be settled within a year using cash or other monetary resources.