Solution-What will be the level of accounts receivable

What will be the level of accounts receivable

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

Reference no: EM131105584

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What will be the level of accounts receivable

Reference no: EM131105584

Reference no: EM131105584

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