What will be the level of account receivables following the change ? Harrelson Inc currently has $750,000 in accounts receivableand it's days sales outstanding (DSO) is 55 days. It wants toreduce its DSO to 35 days by pressuring more of its customersto pay their bills on time. If this policy is adopted thecompany's average sales will fall by 15%.What will be the level of accounts receivable following thechange? Assume a 365-day year.

Step 1: Define Accounts ReceivableWhen the product is given to the purchaser on credit by the…

Answered: Harrelson Inc currently has $750,000 in…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter18: The Management Of Accounts Receivable And Inventories

Section: Chapter Questions

Problem 10QTD

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