ALei Industries has credit sales of$153million a year. ALei's management reviewed its credit policy and decided that it wants to maintain an average collection period of45days.

a. What is the maximum level of accounts receivable that ALei can carry and have a45-day average collectionperiod?

b. IfALei's current accounts receivable collection period is60days, how much would it have to reduce its level of accounts receivable in order to achieve its goal of45days?

a. What is the maximum level of accounts receivable that ALei can carry and have a45-day average collectionperiod?

The maximum level of accounts receivable will be $18.9 million.

b. IfALei's current accounts receivable collection period is 60 days, how much would it have to reduce its level of accounts receivable in order to achieve its goal of 45 days? ALei needs to reduce its accounts receivable by $____ million. (Round to one decimalplace.)