Problem 12 (DSO and Accounts Receivable) James Inc. currently has P750,000 in accounts receivable, and its day 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.
Problem 12 (DSO and Accounts Receivable) James Inc. currently has P750,000 in accounts receivable, and its day 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.
Chapter18: The Management Of Accounts Receivable And Inventories
Section: Chapter Questions
Problem 10QTD
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![Problem 12 (DSO and Accounts Receivable)
James Inc. currently has P750,000 in accounts receivable, and its day 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.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ffc57eac9-a1b7-4fdb-8f20-c9b533c3d116%2Fde5f7e2a-b15b-43ff-b981-b3d7cb51bc48%2Ftbpq93g_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Problem 12 (DSO and Accounts Receivable)
James Inc. currently has P750,000 in accounts receivable, and its day 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.
![Problem 13 (Statement of Financial Position Analysis)
Complete the statement of financial position and sales information using the
following financial data:
Debt-to-assets ratio
Current ratio
Total assets turnover
Day sales outstanding
50%
1.8 x
1.5 x
36.5 days (calculation is based on a 365- day
year)
(Sales - Cost of goods sold) / Sales = 25%
5 x
Gross profit margin on sales
Inventory turnover ratio
%3D](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ffc57eac9-a1b7-4fdb-8f20-c9b533c3d116%2Fde5f7e2a-b15b-43ff-b981-b3d7cb51bc48%2F3zremy9_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Problem 13 (Statement of Financial Position Analysis)
Complete the statement of financial position and sales information using the
following financial data:
Debt-to-assets ratio
Current ratio
Total assets turnover
Day sales outstanding
50%
1.8 x
1.5 x
36.5 days (calculation is based on a 365- day
year)
(Sales - Cost of goods sold) / Sales = 25%
5 x
Gross profit margin on sales
Inventory turnover ratio
%3D
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