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Would someone be able to help me with the the second question (b) ? A break down would be helpful. (Efficiency analysis) ALei Industries has

image text in transcribedWould someone be able to help me with the the second question (b) ? A break down would be helpful.

(Efficiency analysis) ALei Industries has credit sales of $153 million a year. ALei's management reviewed its credit policy and decided that it wants to maintain an average collection period of 40 days. a. What is the maximum level of accounts receivable that Alei can carry and have a 40-day average collection period? b. If Alei's current accounts receivable collection period is 55 days, how much would it have to reduce its level of accounts receivable in order to achieve its goal of 40 days? a. What is the maximum level of accounts receivable that ALei can carry and have a 40-day average collection period? The maximum level of accounts receivable will be $ 16.8 million. (Round to one decimal place.) b. If Alei's current accounts receivable collection period is 55 days, how much would it have to reduce its level of accounts receivable order to achieve its goal of 40 days? ALei needs to reduce its accounts receivable by $ million. (Round to one decimal place.)

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