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Nhyju Limited currently earns $519,000 in sales revenue every year. Management believes that sales revenue can be increased to $768,000 every year by offering more
Nhyju Limited currently earns $519,000 in sales revenue every year. Management believes that sales revenue can be increased to $768,000 every year by offering more generous credit terms. The more generous credit terms will have the effect of increasing the average collection period from 20 days to 80 days.
Calculate the expected increase in accounts receivable from increasing the collection period.
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