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28 Sep 2019
ABC Company reports the following items:
CreditSales: $275,000
Beginning A/R: $50,000
EndingA/R: $65,000
How many days does it take for ABCCompany to convert its receivables to cash? Assume thatthe industry average is 50 days. Is ABC Company underperforming oroverperforming the industry? Provide a recommendation to ABCCompany (Assume that ABC currently offers customers 60 days to paytheir bills).
ABC Company reports the following items:
CreditSales: $275,000
Beginning A/R: $50,000
EndingA/R: $65,000
How many days does it take for ABCCompany to convert its receivables to cash? Assume thatthe industry average is 50 days. Is ABC Company underperforming oroverperforming the industry? Provide a recommendation to ABCCompany (Assume that ABC currently offers customers 60 days to paytheir bills).
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Jarrod RobelLv2
28 Sep 2019