Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

Ingraham Inc. currently has $800,000 in accounts receivable, and its days sales outstanding (DSO) is 51 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 15%. 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.

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 Theory And Practice Of Investment Management

Authors: Frank J Fabozzi, Harry M Markowitz

2nd Edition

0470929901, 9780470929902

More Books

Students also viewed these Finance questions

Question

Were the participants sensitized by taking a pretest?

Answered: 1 week ago