Dynamix, Inc. has credit sales of $380,000 annually. A proposed change in credit policy is expected to

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Dynamix, Inc. has credit sales of $380,000 annually. A proposed change in credit policy is expected to increase ACP from 34 days to 61 days.

a) By how much will A/R increase if there is no expected increase in sales?

b) By how much will A/R increase if there is an expected increase of 15% in net credit sales?

Related Book For answer-question

Contemporary Financial Management

ISBN: 9780324289114

10th Edition

Authors: James R Mcguigan, R Charles Moyer, William J Kretlow

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Posted Date: Mar 29, 2023 01:37 AM

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Dynamix, Inc. has credit sales of $380,000 annually. A proposed change in credit policy is expected to

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a To calculate the increase in accounts receivable AR if there is no expected increase in sales we n... View the full answer

Contemporary Financial Management

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