Curtain Industries currently has $1,500,000 in accounts receivable. Its days sales outstanding (DSO) is 60 days. The company wants to reduce its DSO to the industry average of 36 days by pressuring more of its customers to pay their bills on time. The company's CFO estimates that if this policy is adopted the company's average sales will fall by 15 percent. Assuming that the company adopts this change and succeeds in reducing its DSO to 36 days and does lose 15 percent of its sales, what will be the level of accounts receivable following the change? Assume a 365-day year.

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The Answer of Curtain Industries currently has $1,500,000 in accounts receivable. Its days sales outstanding (DSO) is 60 days. The company wants to reduce its DSO to the industry average of 36 days by pressuring more of its customers to pay their bills on time. The company's CFO estimates that if this policy is adopted the company's average sales will fall by 15 percent. Assuming that the company adopts this change and succeeds in reducing its DSO to 36 days and does lose 15 percent of its sales, what will be the level of accounts receivable following the change? Assume a 365-day year.

Curtain Industries Currently Has $1,500,000 in Accounts Receivable