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Business, 26.05.2021 01:30 ceburns23

Tough Company is basing next year's budget on sales of $27 million. Tough expects that 80% of sales will be on credit, with n/30 terms. Tough estimates that relaxing the credit policy will increase credit sales by 30% and increase the average collection period from 28 to 40 days. Based on a 360-day year, what is the expected increase in Tough's average accounts receivable balance

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Tough Company is basing next year's budget on sales of $27 million. Tough expects that 80% of sales...

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