Answered: Atlantic Northern Inc. currently has…

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...

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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

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
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 wit
the CFO wants to lower the DSO to the ind
$453,471
$431,877
O $410,283
O $388,689
39.28
and wants to improve collections next year. Sales are expected to grow by 13% next year, and
44.90 erage of 30 days. How much accounts receivable is the firm expected to carry?
42.09
56.12

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