What is the marginal investment in accounts receivable under the proposed plan? (See Table 14.7)
A)$1,234,375
B)$1,382,500
C)$1,567,300
D)$1,841,570

Question

Quizplus · Accepted Answer

The marginal investment in accounts receivable is the difference between the proposed plan's accounts receivable and the current plan's accounts receivable. The proposed plan's accounts receivable is $1,841,570 and the current plan's accounts receivable is $607,195. Therefore, the marginal investment in accounts receivable is $1,841,570 - $607,195 = $1,234,375.

What Is the Marginal Investment in Accounts Receivable Under the Proposed