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The following information about Douglas Corp.'s Accounts Receivable and Sales are presented below: Year 2015-Beginning Balance of A/R = $791M Year 2015 -Ending Balance of
The following information about Douglas Corp.'s Accounts Receivable and Sales are presented below: Year 2015-Beginning Balance of A/R = $791M Year 2015 -Ending Balance of A/R = $807M Year 2015 - Sales = $3,002M Sales growth will be equal to 6% per year A/R turnover will stay constant throughout the forecast period What problem does a constant A/R turnover assumption cause? Provide a solution to the problem caused by a constant A/R turnover assumption
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