All else being equal,an increase in the average net receivables necessarily implies an increase in days to collect.

Question

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Average net receivables is the total amount of outstanding customer payments that a company is owed. If this amount increases, it means that customers are taking longer to pay their bills, which will result in an increase in the number of days it takes the company to collect payment. This is because the formula for days to collect involves dividing the average net receivables by the average daily sales, so if the numerator goes up, the quotient (days to collect) will also go up.

All Else Being Equal,an Increase in the Average Net Receivables