The 2016 financial statements of CVS Health Corporation reported sales of $177,526 million and accounts receivable of $12,164 million.
If sales are projected to increase 4% next year, what is the projected accounts receivable balance for 2017?
A) $12,164 million
B) $12,739 million
C) $12,998 million
D) $13,016 million
E) $13,529 million

Question

Quizplus · Accepted Answer

The projected sales for 2017 would be $177,526 million * 1.04 = $184,627.04 million. Assuming the ratio of accounts receivable to sales remains constant, the projected accounts receivable would be $12,164 million / $177,526 million * $184,627.04 million = $12,739 million.

The 2016 Financial Statements of CVS Health Corporation Reported Sales