Question $7$

$3$ pts

Yana and Ursula's Corporation $($traded as YUC on the NASDAQ$)$ have annual credit sales of $$255,000.$ Their credit terms are $\frac{2}{18},$ net $30.$ Additionally, $50\%$ of their customers take the discount and pay on day $18,$ and $50\%$ of their customers pay on day $30.($Assume a $360$ day year$)$

If a new and aggressive competitor enters their market area, what is likely to happen to their accounts receivable balance calculated in the prior question, all else the same?

It will stay the same

not enough data provided

It will become larger

It will become less

It will be proportional to the inverse of the average collection period