Deka DJ's is a small company run by a group of students who spin discs for parties in the Burlington and Milton area. They find they always seem to be out of money. Perhaps they're spending too much...perhaps they aren't collecting their bills. In June, July, and August, they invoiced $155,000 worth of business, but they still have to collect on $72,000 of it. One member feels they need to give clients more time to pay, however, a 30-day credit term is an industry standard. One member recognizes that if they can find some money, they can buy more equipment, and earn a 10% ROL Use cell referencing when possible. Determine: 1. Deka DJ's current collection period. 2. Their investment in accounts receivable if they change their credit terms to 30 days. 3. How much profit can they make if they reduce their accounts receivable? Current Targetted Sales Average Daily Sales Investment in Accounts Receivable Average Collection Period Reduction in accounts receivable ("money released") Incremental profit