Projecting profit margins into the future on the basis of past results would be

Question

                                                                                          

Projecting profit margins into the future on the basis of past   results would be most reliable when the company: A. is in the   commodities B. Operates   in a single business segment C. is a   large diversified company operating in mature industries Galambos   Corporation had an average receivables collection period of 19 days in 2003   Galambos has stated that is wands to decrease   its collection period in 2004to match the industry average of 15 days. Credit   sales in 2003 were $300 million, analysts   expect credit sales to increase to $400 million in 2004. To achieve the   companys's goal of decreasing the collection period , the   change in the average accounts receivable balance from 2003 to 2004 that must   occur is closest to A. A.   -$420,000 B.   $420,000 $$8360,000

Explanation / Answer

C. is a   large diversified company operating in mature industries

C. is a   large diversified company operating in mature industries

B.   $420,000

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