Dogway Candy Company sells candy on consignment to big-box stores and currently has $$ 1,000,000$ in accounts

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Dogway Candy Company sells candy on consignment to "big-box" stores and currently has $\$ 1,000,000$ in accounts receivable. Its days sales outstanding (DSO) is 50 days (based on a 365-day year). The company wants to reduce its DSO to the industry average of 32 days by pressuring more of its customers to pay their bills on time. The company's CFO estimates that if this policy is adopted, the company's average sales will fall by 10 percent. Assuming that the company adopts this change and succeeds in reducing its DSO to 32 days and does lose 10 percent of its sales, what will be the level of accounts receivable following the change?

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