If Kaiser could reduce its DSO from 40.55 days to 30.4 days while holding otherthings constant, how much cash would it generate? I
RATIO ANALYSIS The following data apply to A.L. Kaiser & Company (millions of dollars):Cash and equivalents $ 100.00Fixed assets 283.50Sales 1,000.00Net income 50.00Current liabilities 105.50Notes payable to bank 20.00Current ratio 3.003DSOa 40.55 daysROE 12.00%aThis calculation is based on a 365-day year.Kaiser has no preferred stock—only common equity, current liabilities, and long-term debt.a. Find Kaiser’s (1) … Read more