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Ovid Industries has sales of $300,000 and accounts receivable of $20,500, and it gives its...

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Ovid Industries has sales of $300,000 and accounts receivable of $20,500, and it gives its customers 20 days to pay. The industry average DSO is 18 days, based on a 365-day year. a). what is the company's DSO (5 marks) b). If the company changes its credit and collection policy sufficiently to cause its DSO to fall to the industry average, and if it earns 6.0% on any cash freed-up by this change, how would that affect its net income, assuming other things are held constant? (10 marks) c). Many companies also use Du Pont equation to analyze the change of ROE. Explain why Du Pont equation is useful

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