Answered step by step
Verified Expert Solution
Question
1 Approved Answer
3. Bravo Inc. offers sales terms of 30 days, but as sales have grown, collection of accounts receivable has gone from an average of 28
3. Bravo Inc. offers sales terms of 30 days, but as sales have grown, collection of accounts receivable has gone from an average of 28 days to 38 days. To address this, two new collections staff have been employed, doubling the collection team. As a result, the business is projecting that receivables will be collected on an average of 36 days next year. What is your assessment of this assumption?
A. This assumption is plausible.
B.This assumption is too aggressive.
C.This assumption is overly conservative.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started