Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

6. Problem 4.20 (DSO and Accounts Recelvable) Ingraham Inc, currentiy has 5595,000 in accounts recelvable, and its days sales outitanding (D50) is 44 dava. lt

image text in transcribed
6. Problem 4.20 (DSO and Accounts Recelvable) Ingraham Inc, currentiy has 5595,000 in accounts recelvable, and its days sales outitanding (D50) is 44 dava. lt wants to reduce its 050 to 35 days by pressuring more of its cussomers to pay their blst on time. If this policy is adopted, the company's averege sales will fall by 25%. What will be the levei ef accounts receivable following the changa? Assume a 355 -day year. Do not round intermediate caiculations. Round vour answer to the nearest dollar

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

The Economics Of Money Banking And Financial Markets

Authors: Frederic S. Mishkin

9th Edition

0321598903, 978-0321598905

More Books

Students also viewed these Finance questions