The following information about Douglas Corp.'s Accounts Receivable and Sales are presented below:
Required:
a.Using this information,forecast Douglas Corp.'s the growth in Accounts Receivable for years 2013-2017.
b.What problem does a constant A/R turnover assumption cause?
c.Provide a solution to the problem caused by a constant A/R turnover assumption.

Question

The following information about Douglas Corp.'s Accounts Receivable and Sales are presented below:
  Required:
a.Using this information,forecast Douglas Corp.'s the growth in Accounts Receivable for years 2013-2017.
b.What problem does a constant A/R turnover assumption cause?
c.Provide a solution to the problem caused by a constant A/R turnover assumption.

Quizplus · Accepted Answer

The Answer of The following information about Douglas Corp.'s Accounts Receivable and Sales are presented below:
  Required:
a.Using this information,forecast Douglas Corp.'s the growth in Accounts Receivable for years 2013-2017.
b.What problem does a constant A/R turnover assumption cause?
c.Provide a solution to the problem caused by a constant A/R turnover assumption.

The Following Information About Douglas Corp