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EXERCISE 10: AVERAGE COLLECTION PERIOD AND CHANGE IN AVERAGE RECEIVABLES Annual sales amount to 990,000 and accounts receivable average 100,000 Required: a.) Average collection period
EXERCISE 10: AVERAGE COLLECTION PERIOD AND CHANGE IN AVERAGE RECEIVABLES
Annual sales amount to 990,000 and accounts receivable average 100,000
Required:
a.) Average collection period at present
b.) Estimated change in the amount of accounts receivable assuming that receivable turnover rate increases by 25%
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