Compuglobal Corp. currently has $715,000 in accounts receivable and generated $4,350,000 in sales (all on credit)...

 

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Compuglobal Corp. currently has $715,000 in accounts receivable and generated $4,350,000 in sales (all on credit) during the year that just ended. The firm's days sales outstanding (DSO) is days. Use 365 days as the length of a year in all calculations. Compuglobal Corp.'s CFO is unhappy with its DSO and wants to improve collections next year. Sales are expected to grow by 16% next year, and the CFO wants to lower the DSO to the industry average of 30 days. How much accounts receivable is the firm expected to carry? Compuglobal Corp. currently has $715,000 in accounts receivable and generated $4,350,000 in sales (all on credit) during the year that just ended. The firm's days sales outstanding (DSO) is days. Use 365 days as the length of a year in all calculations. Compuglobal Corp.'s CFO is unhappy with its DSO and wants to improve collections next year. Sales are expected to grow by 16% next year, and the CFO wants to lower the DSO to the industry average of 30 days. How much accounts receivable is the firm expected to carry?

Answer rating: 100% (QA)

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