Back to Assignment

Attempts

Keep the Highest $/10$

$10.$ Problem $4\mathrm{.}20($DSO and Accounts Receivable$)$

eBook

Problem Walk$-$Through

Ingraham Inc. currently has $$925,000$ in accounts receivable, and its days sales outstanding $($DSO$)$ is $50$ days. It wants to reduce its DSO to $20$ days by pressuring more of its customers to pay their bills on time. If this policy is adopted, the company's average sales will fall by $20\%.$ What will be the level of accounts receivable following the change? Assume a $365-$day year. Do not round intermediate calculations. Round your answer to the nearest dollar.

$

Continue without saving