the Brooklynn club bas 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

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 for forty days

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