Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

4. Financial ratios in the forecasting process Malty Publications Inc. currently has $695,000 in accounts receivable and generated $4,870,000 in sales (all on credit) during

image text in transcribed

4. Financial ratios in the forecasting process Malty Publications Inc. currently has $695,000 in accounts receivable and generated $4,870,000 in sales (all on credit) during the year that just ended. The firm's days sales outstanding (DSO) is days. Use 365 days as the length of a year in all calculations. Malty Publications Inc.'s CFO is unhappy with its DSO and wants to improve collections next year. Sales are expected to grow by 15% next year, and the CFO wants to lower the DSO to the industry average of 30 days. How much accounts receivable is the firm expected to carry? $598,410$460,315$437,299$506,347

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial management theory and practice

Authors: Eugene F. Brigham and Michael C. Ehrhardt

13th edition

1439078106, 111197375X, 9781439078105, 9781111973759, 978-1439078099

More Books

Students also viewed these Finance questions

Question

=+. a union worker in the second year of a labor contract

Answered: 1 week ago

Question

=+ b. A change in weather patterns increases the depreciation rate.

Answered: 1 week ago