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
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
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...
Related questions
Question
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](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc6966911-ac14-4bcf-b105-e95211439ade%2Fce78fe0e-36e5-49a4-9df8-e517839187a0%2Ffwfcyap_processed.png&w=3840&q=75)
Transcribed Image Text: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
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 2 images
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
![Intermediate Financial Management (MindTap Course…](https://www.bartleby.com/isbn_cover_images/9781337395083/9781337395083_smallCoverImage.gif)
Intermediate Financial Management (MindTap Course…
Finance
ISBN:
9781337395083
Author:
Eugene F. Brigham, Phillip R. Daves
Publisher:
Cengage Learning
![EBK CONTEMPORARY FINANCIAL MANAGEMENT](https://www.bartleby.com/isbn_cover_images/9781337514835/9781337514835_smallCoverImage.jpg)
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:
9781337514835
Author:
MOYER
Publisher:
CENGAGE LEARNING - CONSIGNMENT
![Intermediate Financial Management (MindTap Course…](https://www.bartleby.com/isbn_cover_images/9781337395083/9781337395083_smallCoverImage.gif)
Intermediate Financial Management (MindTap Course…
Finance
ISBN:
9781337395083
Author:
Eugene F. Brigham, Phillip R. Daves
Publisher:
Cengage Learning
![EBK CONTEMPORARY FINANCIAL MANAGEMENT](https://www.bartleby.com/isbn_cover_images/9781337514835/9781337514835_smallCoverImage.jpg)
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:
9781337514835
Author:
MOYER
Publisher:
CENGAGE LEARNING - CONSIGNMENT