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A company sells on terms of net 30. Annual credit sales are $60 million, and its accounts receivable average 10 days overdue. A) Determine The
| A company sells on terms of "net 30." Annual credit sales are | |||||
| $60 million, and its accounts receivable average 10 days overdue. | |||||
| A) Determine The Company's investment in receivables. | |||||
| B) Suppose that annual credit sales decline by 10% and customers | |||||
| delay their payments to an average of 20 days past due. Determine | |||||
| the company's new level of receivables investment. | |||||
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The Audit Value Factor Making Managements Head Turn Internal Audit And IT Audit Series
Authors: Daniel Samson
1st Edition
1138198129, 978-1138198128
