Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Ingraham Inc. currently has $ 4 8 5 , 0 0 0 in accounts receivable, and its days sales outstanding ( DSO ) is 5

Ingraham Inc. currently has $485,000 in accounts receivable, and its days sales outstanding (DSO) is 57 days. It wants to reduce its DSO to 20 days by
pressuring more of its customers to pay their bills on time. If this policy is adopted, the company's average sales will fall by 25%. What will be the level
of accounts receivable following the change? Assume a 365-day year. Do not round intermediate calculations. Round your answer to the nearest dollar.
$
image text in transcribed

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

The Wealthtech Book The FinTech Handbook For Investors Entrepreneurs And Finance Visionaries

Authors: Susanne Chishti, Thomas Puschmann

1st Edition

1119362156, 978-1119362159

More Books

Students also viewed these Finance questions

Question

22. Customers show a preference for rich colors.

Answered: 1 week ago