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Qwerty Limited has sales revenue of $4,500,000 (all on credit), cost of sales of $2,997,000, inventories of $234,000 and accounts receivable of $456,000. How much cash can be generated by increasing the accounts receivable turnover to 20 and the inventory turnover to 15? Show your answer to the nearest dollar.

Qwerty Limited has sales revenue of $4,500,000 (all on credit), cost of sales of $2,997,000, inventories of $234,000 and accounts receivable of $456,000. How much cash can be generated by increasing the accounts receivable turnover to 20 and the inventory turnover to 15? Show your answer 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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Qwerty Limited has sales revenue of $4,500,000 (all on credit), cost of sales of $2,997,000, inventories of $234,000 and accounts receivable of $456,000. How much cash can be generated by increasing the accounts receivable turnover to 20 and the inventory turnover to 15? Show your answer to the nearest dollar.
Transcribed Image Text:Qwerty Limited has sales revenue of $4,500,000 (all on credit), cost of sales of $2,997,000, inventories of $234,000 and accounts receivable of $456,000. How much cash can be generated by increasing the accounts receivable turnover to 20 and the inventory turnover to 15? Show your answer to the nearest dollar.
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