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If the company can decrease the Receivables Turnover by 6 days, at the current sales level, what will be the increase in operating cashflow? Round to the nearest dollar.

If the company can decrease the Receivables Turnover by 6 days, at the current sales level, what will be the increase in operating cashflow? Round to the nearest dollar.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Assume the following is the current asset section from the Squirrel.com Balance Sheet. Assume Revenues for 2017 was $1,538,000 Cash and Cash Equivalents Investments Accounts Receivable, net Deferred Income Taxes Prepaid expenses Current assets of discontinue operations Funds held for payroll customers 2017 $ 63,535 Total current assets $ 645,115 $ 60.125 $ 34.850 $ 69,275 $ 11,989 2016 $ 15,208 $ 257,838 $ 1,142,727 $ 669,791 $ 61.615 $ 2,279 $ 223,041 $ 1,015,820 If the company can decrease the Receivables Turnover by 6 days, at the current sales level, what will be the increase in operating cashflow? Round to the nearest dollar. $ 11,094 $ 32,792
Transcribed Image Text:Assume the following is the current asset section from the Squirrel.com Balance Sheet. Assume Revenues for 2017 was $1,538,000 Cash and Cash Equivalents Investments Accounts Receivable, net Deferred Income Taxes Prepaid expenses Current assets of discontinue operations Funds held for payroll customers 2017 $ 63,535 Total current assets $ 645,115 $ 60.125 $ 34.850 $ 69,275 $ 11,989 2016 $ 15,208 $ 257,838 $ 1,142,727 $ 669,791 $ 61.615 $ 2,279 $ 223,041 $ 1,015,820 If the company can decrease the Receivables Turnover by 6 days, at the current sales level, what will be the increase in operating cashflow? Round to the nearest dollar. $ 11,094 $ 32,792
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