Answered step by step
Verified Expert Solution
Question
1 Approved Answer
PLEASE ASSIST WITH THIS QUESTION ON FINANCIAL RATIO. THE ANSWER IS R576000 . PLEASE SHOW HOW THEY GOT IT 2) JB Pty Ltd currently has
PLEASE ASSIST WITH THIS QUESTION ON FINANCIAL RATIO. THE ANSWER IS R576000. PLEASE SHOW HOW THEY GOT IT
2) JB Pty Ltd currently has R1,000,000 in accounts receivable. Its days sales outstanding (Debtors' Days) is 50 days (based on a 365-day year). Assume a 365-day year. The company wants to reduce its Debtors' Days to the industry average of 32 days by pressuring more of its customers to pay their bills on time. The company's Chief Financial Officer estimates that if this policy is adopted the company's average sales will fall by 10 percent. Assuming that the company adopts this change and succeeds in reducing its Debtors' Days to 32 days and does lose 10 percent of its sales, what will be the level of accounts receivable following the change? (Ignore VAT in this question)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