Problemyour firm has 450 million invested in accounts, Ask an Expert

Accounting

Problem:

Your firm has $45.0 million invested in accounts receivable, which is 90 days of net revenues.

Required:

Question: If this value could be reduced to 50 days, what annual increase in income would your firm realize if the increase in cash could be invested at 7.5 percent?

Note: Show supporting computations in good form.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M91170959

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