Question
Dynamix, Inc. has credit sales of $380,000 annually. A proposed change in credit policy is expected to increase ACP from 34 days to 61 days.
Dynamix, Inc. has credit sales of $380,000 annually. A proposed change in credit policy is expected to increase ACP from 34 days to 61 days. a) By how much will A/R increase if there is no expected increase in sales? b) By how much will A/R increase if there is an expected increase of 15% in net credit sales?
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Corporate Finance
Authors: Jonathan Berk and Peter DeMarzo
3rd edition
978-0132992473, 132992477, 978-0133097894
