Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Ingraham Inc. currently has $860,000 in accounts receivable, and its days sales outstanding (DSO) is 46 days. It wants to reduce its DSO to 25
Ingraham Inc. currently has $860,000 in accounts receivable, and its days sales outstanding (DSO) is 46 days. It wants to reduce its DSO to 25 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 10%. 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
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started