The following data from 2018 are for an actual electronics retailer that to the great surprise of many,

managed in recent years to increase sales despite intense competition from Amazon and Best Buy.

Net sales for year ended January 31, 2019 $1,168 million

Net accounts receivable at January 31, 2019 $1,339 million

Net accounts receivable at January 31, 2018 $1,289 million

The firm has never been involved in a consignment, either as consignor or consignee.

Part A

While the authors note on text p. 129 that accounts receivable are generally collected within one month,

a friend calculated a somewhat higher period of time for this firm: 411 days or practically 14 months!

In the space below, show how your friend must have arrived at her answer.

Part B

Suggest two policy changes that the firm most likely took with respect to its accounts receivable that

could explain how it was able to show surprisingly strong sales growth.

1. ___________________________________________________________________________________

___________________________________________________________________________________

2. ___________________________________________________________________________________

___________________________________________________________________________________

Part C

What downside to the policy changes is apparent in the data shown for the firm?