Question: Could you explain the steps for solving this general accounting question accurately? A company is currently running a DSO of 60 days on annual sales

Could you explain the steps for solving this general accounting question accurately?

A company is currently running a DSO of 60 days on annual sales of $2 million. If the company projects that next year's sales will be $2.5 million, how much will the level of accounts receivable (A/R) increase (assuming DSO remains at 60 days)

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