Projecting profit margins into the future on the basis of past results would be most reliable when the company:
A. is in the commodities
B. Operates in a single business segment
C. is a large diversified company operating in mature industries
Galambos Corporation had an average receivables collection period of 19 days in 2003 Galambos has stated that is wands
to decrease its collection period in 2004to match the industry average of 15 days. Credit sales in 2003 were $300 million,
analysts expect credit sales to increase to $400 million in 2004. To achieve the companys's goal of decreasing the collection
period , the change in the average accounts receivable balance from 2003 to 2004 that must occur is closest to
A. A. -$420,000		B. $420,000		$$8360,000