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Problem 4 The Brooklyn Club has annual revenues of $8 million and all sales are on account. Good credit and collection performance in the club

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Problem 4 The Brooklyn Club has annual revenues of $8 million and all sales are on account. Good credit and collection performance in the club industry result in a forty-day ACP. Assume a year has 365 days. Required: 1. Determine the maximum receivables balance the club can tolerate and still receive a good rating for credit and collections. 2. If the Brooklyn Club is currently collecting receivables in forty-five days, by how much must the receivable balance be reduced to achieve an ACP of forty days

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