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  The Case of Mid-Size Corp.
   
  Mid-Size Corp is a fictitious company. Mid-Size Corp has an outstanding accounts receivable portfolio of $4.750 million, annual credit sales of
$40 million and thus a DSO of 43:
   
  $4.750 million (A/R) / $40 million credit sales x 365 days = 43 DSO
   
  Therefore, each day DSO reduction frees up an additional $118,790 in cash the company can use to fund operations and grow the business .By implementing 1st Pay's RightSourcing methodology, Mid-Size Corp was able to reduce DSO by 6 days to 37. The result is an increase in cash of $712,740:
   
  6 days reduction x $118,790 per day = $712,740
   
  Thus, by reducing DSO by 6 days, Mid-Size Corp has access to $712,740 of cash and approximately $71,274 in reduced interest expense (10% annual interest).
   
  Mid-Size Corp discovers that transaction costs also open up new ways to interact with customers, creating further positive impact on gross margins. Until a company receives payment, their cash is trapped on the balance sheet and not working to meet the company's strategic objectives.
   
     
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