Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Compuglobal Corp. currently has $620,000 in accounts receivable and generated $4, 440,000 in sales (all on credit) during the year that just ended. The firm's

image text in transcribed

Compuglobal Corp. currently has $620,000 in accounts receivable and generated $4, 440,000 in sales (all on credit) during the year that just ended. The firm's days sales outstanding (DSO) is 50.97 days? Use 365 days as the length of a year in all calculations. Compuglobal Corp.'s CFO is unhappy with its DSO and wants to improve collections next year. Sales are expected to grow by 16% 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? $550, 317 $507, 985 $465, 653 $423, 321

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

Middle Market M And A Handbook For Advisors Investors And Business Owners

Authors: Kenneth H. Marks, Christian W. Blees, Michael R. Nall, Thomas A. Stewart

2nd Edition

1119828104, 978-1119828105

More Books

Students also viewed these Finance questions