Question: 10. Problem 4.20 (DSC and Accounts Receivable) ebook Problem Walk-Through Ingraham Inc. Currently has $535,000 in accounts receivable, and its days sales outstanding (OSO) is
10. Problem 4.20 (DSC and Accounts Receivable) ebook Problem Walk-Through Ingraham Inc. Currently has $535,000 in accounts receivable, and its days sales outstanding (OSO) is 67 days. It wants to reduce its DSC to 25 days by pressuring more of les customers to pay their bills on time. If this policy is adopted, the company's average sales wit all by 5%. What will be the level of accounts receivable following the change? Assumt a365-day year. Do not round Intermediate calculations. Round your answer to the nearest dollar
Step by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
