Question
Compuglobal Corp. currently has $660,000 in accounts receivable and generated $4,650,000 in sales (all on credit) during the year that just ended. The firm's days
Compuglobal Corp. currently has $660,000 in accounts receivable and generated $4,650,000 in sales (all on credit) during the year that just ended. The firm's days sales outstanding (DSO) is (38.86/ 51.81/ 49.22/ 41.45) 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 12% 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?
$428,055
$406,652
$449,458
$513,666
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