A company is currently running a dso of 45 days on annual sales of $1.25 m. If the company is projecting that next year's sales will be $1.6 m, how much will the level of a/r increase (assuming dso remains at 45 days)?

A company is currently running a dso of 45 days on annual sales of $1.25 m. If the company is projecting that next year's sales will be $1.6 m, how much will the level of a/r increase (assuming dso remains at 45 days)?

Excel Applications for Accounting Principles

4th Edition

ISBN:9781111581565

Author:Gaylord N. Smith

Publisher:Gaylord N. Smith

Chapter22: Master Budget (master)

Section: Chapter Questions

Problem 5R: Suppose the company has just the opposite news and now expects unit sales for August, September, and...

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Question

A company is currently running a dso solve this general accounting question

A company is currently running a dso of 45 days on annual sales
of $1.25 m. If the company is projecting that next year's sales will
be $1.6 m, how much will the level of a/r increase (assuming dso
remains at 45 days)?

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