Lei Industries has credit sales of $143 million a year. A Lei's management reviewed its credit policy and decided that it wants to maintain an average collection period of 45 days.

a.What is the maximum level of accounts receivable that A Lei can carry and have a 45-day average collection period?

b.If A Lei's current accounts receivable collection period is 55 days, how much would it have to reduce its level of accounts receivable in order to achieve its goal of

45 days?