Assume that sales are not affected by the tighter credit

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Reference no: EM131012539

Weir Incorporated has sales of $200,000 and accounts receivable of $18,500. You can easily show that its DSO is well over the industry average of 27 days. Suppose that it speeds up collection, matches the industry average, and manages to earn 8% interest on the cash not tied up in receivables. What would be the savings per year? Assume that sales are not affected by the tighter credit.

a. $241.45

b. $254.16

c. $267.54

d. $281.62

e. $296.44

Reference no: EM131012539

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