General accounting Brightstar Industries had an average receivablescollection period of 25 days in 2023. The company aimsto improve efficiency by reducing its collection periodin 2024 to match the industry standard of 20 days.Credit sales in 2023 were $500 million, and financialprojections indicate credit sales will grow to $600million in 2024. To achieve the company's targetcollection period, the change in the average accountsreceivable balance from 2023 to 2024 that must occur isclosest to:A. $1.39 millionB. -$1.39 millionC. $2.78 million

Step 1: DefinitionThe receivables collection period measures how quickly a company collects payments…

Answered: Brightstar Industries had an average…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter3: Evaluation Of Financial Performance

Section: Chapter Questions

Problem 3P

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