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Alpha Logistics recognizes revenue when the goods are put into the ship (point of shipment). Managers agree to increase sales for the present quarter (thus
Alpha Logistics recognizes revenue when the goods are put into the ship (point of shipment). Managers agree to increase sales for the present quarter (thus recognize revenues earlier) by filing all customer orders. Explain what impact this decision will have on the following: a)Days receivable for the next quarter. b)Sales growth for the current quarter. c)Sales growth for the next quarter. d)Return on sales for the current quarter. e)Return on sales for the next quarter.
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