CH Robinson (“CHRW”) is a local, publicly traded firm engaged in the business of third party logistics. CHRW recorded the following information about their last two fiscal years (dollars in thousands):

2017 2018

Sales: $14,869,380 $16,631,172

Accounts Receivable $2,113,930 $2,162,438

Calculate Days of A/R outstanding for 2017 and 2018. If the Company expects revenue to increase by 10% in 2019 and DSO to return to 2017 levels in 2019, then how much additional capital will the Company need to raise to fund the increase in Accounts Receivable? (Note: make sure you calculate DSO to 2 decimal places).

Answer rating: 100% (QA)

Calculate Days of AR outstanding for 2017 and 2018 If the Company expects revenue to in crease by 10 ... View the full answer