Gerald Books Ltd. currently has $720,000 in accounts receivable and generated $5,600,000 in sales (all on credit) during the year that just ended. The firm's days sales outstanding (DSO) is how many days? Use 365 days as the length of a year in all calculations. Gerald Books Ltd.'s CFO is unhappy with its DSO and wants to improve collections next year. Sales are expected to grow by 10% next year, and the CFO wants to lower the DSO to the industry average of 28 days. How much accounts receivable is the firm expected to carry next year? provide answer

Gerald Books Ltd. currently has $720,000 in accounts receivable and generated $5,600,000 in sales (all on credit) during the year that just ended. The firm's days sales outstanding (DSO) is how many days? Use 365 days as the length of a year in all calculations. Gerald Books Ltd.'s CFO is unhappy with its DSO and wants to improve collections next year. Sales are expected to grow by 10% next year, and the CFO wants to lower the DSO to the industry average of 28 days. How much accounts receivable is the firm expected to carry next year? provide answer

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter21: Supply Chains And Working Capital Management

Section: Chapter Questions

Problem 17P: The Raattama Corporation had sales of $3.5 million last year, and it earned a 5% return (after...

See similar textbooks

Similar questions

Negus Enterprises has an inventory conversion period of 50 days, an average collection period of 35 days, and a payables deferral period of 25 days. Assume that cost of goods sold is 80% of sales. What is the length of the firm’s cash conversion cycle? If annual sales are $4,380,000 and all sales are on credit, what is the firm’s investment in accounts receivable? How many times per year does Negus Enterprises turn over its inventory?
Atlantic Northern Inc. currently has $715,000 in accounts receivable and generated $4,650,000 in sales (all on credit) during the year that just ended. The firm’s days sales outstanding (DSO) is days. Use 365 days as the length of a year in all calculations. Atlantic Northern Inc.’s CFO is unhappy with its DSO and wants to improve collections next year. Sales are expected to grow by 13% next year, and the CFO wants to lower the DSO to the industry average of 30 days. How much accounts receivable is the firm expected to carry? $453,471 $431,877 $410,283 $388,689
can you please solve this general accounting
Data on Nathan Enterprises for the most recent year are shown below, along with the days sales outstanding of the firms against which it benchmarks. The firm's new CFO believes that the company could reduce its receivables enough to reduce its DSO to the benchmarks' average. If this were done, by how much would receivables decline? Use a 365-day year. Sales $110,000 Accounts receivable $16,000 Days sales outstanding (DSO) 53.09 Benchmark days sales outstanding (DSO) 20.00 a. $9,973 b. $8,078 c. $8,975 d. $10,970 e. $12,067
can you please solve this
Ingraham Inc. currently has $525,000 in accounts receivable, and its days sales outstanding (DSO) is 67 days. It wants to reduce its DSO to 20 days by pressuring more of its customers to pay their bills on time. If this policy is adopted, the company's average sales will fall by 15%. What will be the level of accounts receivable following the change? Assume a 365-day year. Do not round intermediate calculations. Round your answer to the nearest dollar. $
Can you please solve this financial accounting problem?
Can you please answer the accounting question? I will give you helpful thank you
Brown Corporation had average days of sales outstanding of 19 days in the most recent fi scal year. Brown wants to improve its credit policies and collection practices and decrease its collection period in the next fi scal year to match the industry average of 15 days. Credit sales in the most recent fi scal year were $300 million, and Brown expects credit sales to increase to $390 million in the next fi scal year. To achieve Brown’s goal of decreasing the collection period, the change in the average accounts receivable balance that must occur is closest to: C . –$1.22 million.
answer
Please solve this question general accounting
Globex Corp. has forecasted sales of $30.0 million for next year and expects its cost of goods sold (COGS) to remain at 80% of sales. Currently, the firm holds $2.8 million in inventories, $2.3 million in accounts receivable, and $2.4 million in accounts payable. (Use 365 days are the length of a year in all calculations.) a. Approximately how long does it currently take Globex Corp. to convert raw materials to its finished products and then to sell them? b. On average, how long does it take from the time a sale is made until the time cash is collected from customers? c. Globex Corp. relies on customer credit when it buys raw materials from its suppliers. How long does it take after the firm purchases materials before it sends cash to its suppliers? d. What is the length of Globex Corp.'s cash conversion cycle (CCC)?