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Statement # 3 : One way to interpret the change in Green accounts receivable balance from Year 1 to Year that more purchased new than

Statement #3: One way to interpret the change in Green accounts receivable balance from Year 1 to Year that more purchased new than paying off existing credit This statement because The decrease from $3,375 million to $2,700 implies a net decrease in accounts receivable and that more customers are paying off their receivables balances than are buying on credit The 1675 in accounts receivable means either that Year 1's existing credit customers are not paying off their owed balances and are making additional purchases on credit, or that Year credit customers have repaid their owed balances and Year 2 credit sales have exceeded Year 1's credit The change from $7,920 million to $9,900 million reflects a net accumulation of new credit sales

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