Question
Compuglobal Corp. currently has $715,000 in accounts receivable and generated $4,350,000 in sales (all on credit) during the year that just ended. The firm's
Compuglobal Corp. currently has $715,000 in accounts receivable and generated $4,350,000 in sales (all on credit) during the year that just ended. The firm's days sales outstanding (DSO) is 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?
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Fundamental Accounting Principles Volume 1
Authors: Kermit Larson, Tilly Jensen, Heidi Dieckmann
15th Canadian Edition
1259259803, 978-1259259807
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