Suppose that last year a firm had a dso of 35 days and


Suppose that last year a firm had a DSO of 35 days and annual revenues equal to $10,000,000. The treasury department has made it a goal to reduce the DSO to 30 days, while holding constant revenues. If this reduction is realized, then calculate the following:

a. The dollar change in receivables

b. The change in the OC and CCP given that next year's DIH and DPO are expected to equal 45 days and 75 days, respectively.

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Financial Management: Suppose that last year a firm had a dso of 35 days and
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