Analysis of Financial Statements: Aziz (Garcia) Industries
Not what you're looking for?
Aziz (Garcia) Industries has sales of $167,500 and accounts receivable of $18,500, and it gives its customers 25 days to pay. The industry average DSO is 27 days, based on a 365-day year. If the company changes its credit and collection policy sufficiently to cause its DSO to fall to the industry average, and if it earns 8.0% on any cash freed-up by this change, how would that affect its net income, assuming other things are held constant?
Purchase this Solution
Solution Summary
The solution explains how to determine the amount of freed up cash and the impact on net income with step by step calculations and the answer.
Solution Preview
The amount of receivables if the DSO becomes the industry average of 27 days is
Receivables = (Sales/365) X DSO = ...
Purchase this Solution
Free BrainMass Quizzes
Change and Resistance within Organizations
This quiz intended to help students understand change and resistance in organizations
Situational Leadership
This quiz will help you better understand Situational Leadership and its theories.
Production and cost theory
Understanding production and cost phenomena will permit firms to make wise decisions concerning output volume.
Managing the Older Worker
This quiz will let you know some of the basics of dealing with older workers. This is increasingly important for managers and human resource workers as many countries are facing an increase in older people in the workforce
Income Streams
In our ever changing world, developing secondary income streams is becoming more important. This quiz provides a brief overview of income sources.