Partridge Inc. sells about $45 million a year on credit. Good credit and collections performance in the

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Partridge Inc. sells about $45 million a year on credit. Good credit and collections performance in the industry result in a 35-day ACP.

a. What is the maximum receivables balance Partridge can tolerate and still receive a good rating with respect to credit and collections?

b. If Partridge is now collecting an average receivable in 40 days, by how much will it have to lower the receivables balance to achieve a good rating?

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Practical financial management

ISBN: 978-0324422634

5th Edition

Authors: William r. Lasher

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Question Posted: Sep 13, 2012 03:31 AM

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Partridge Inc. sells about $45 million a year on credit. Good credit and collections performance in the

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a Write the definition of ACP substitute and solve for the AR ...View the full answer

Practical financial management

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