Brown corporation had average days of sales outstanding of 19 days in the most r
ID: 2703471 • Letter: B
Question
Brown corporation had average days of sales outstanding of 19 days in the most recent fiscal year
Brown wants to improve its credit policies and collection practices and decrease its collection period in
the next fiscal year to match the industry average of 15 days. Credit sales in the most recent fiscal year were
$300 million, Brown expects credit sales to increase to $390 million in the next fiscal year. To achieve Brown
goal of decreasing the collection period, the change in average accounts receivable balance that must occur is
most closest to: A. $0.41 million B. - $0.41 million C. -$1.22 million
Brown corporation had average days of sales outstanding of 19 days in the most recent fiscal year
Brown wants to improve its credit policies and collection practices and decrease its collection period in
the next fiscal year to match the industry average of 15 days. Credit sales in the most recent fiscal year were
$300 million, Brown expects credit sales to increase to $390 million in the next fiscal year. To achieve Brown
goal of decreasing the collection period, the change in average accounts receivable balance that must occur is
most closest to: A. $0.41 million B. - $0.41 million C. -$1.22 million
Which ratio would a company most likely use to measure its ability to meet short- term obligations?
A. Current B. Payable turnover C. Gross profit margin
Which of the following ratios would be most useful in determining a company's ability to cover its lease and interest payments? A. ROA
B. Total asset turnover C. Fixed charge coverage
Brown corporation had average days of sales outstanding of 19 days in the most recent fiscal year Brown wants to improve its credit policies and collection practices and decrease its collection period in the next fiscal year to match the industry average of 15 days. Credit sales in the most recent fiscal year were $300 million, Brown expects credit sales to increase to $390 million in the next fiscal year. To achieve Brown goal of decreasing the collection period, the change in average accounts receivable balance that must occur is most closest to: A. $0.41 million B. $0.41 million C. -$1.22 million Which ratio would a company most likely use to measure its ability to meet shortterm obligations? Which of the following ratios would be most useful in determining a company's ability to cover its lease and interest payments?
Explanation / Answer
0.41 million
A. Current
C. Fixed charge coverage
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.