Use the tables for the question(s)below.
Pro Forma Income Statement for Ideko, 2013-2018
Pro Forma Assets & Liabilities for Ideko, 2013-2018

-With the proper changes it is believed that Ideko's credit policies will allow for an accounts receivable days of 60. The forecasted accounts receivable for Ideko in 2016 is closest to:
A)$16 970
B)$22 710
C)$19 690
D)$14 525

Question

Use the tables for the question(s)below.
Pro Forma Income Statement for Ideko, 2013-2018
  Pro Forma Assets & Liabilities for Ideko, 2013-2018
 
-With the proper changes it is believed that Ideko's credit policies will allow for an accounts receivable days of 60. The forecasted accounts receivable for Ideko in 2016 is closest to:
A)$16 970 
B)$22 710 
C)$19 690 
D)$14 525

Quizplus · Accepted Answer

The accounts receivable days formula is (Accounts Receivable / Sales) * 365. Given that the accounts receivable days are 60, you can rearrange the formula to find Accounts Receivable = (Sales * 60) / 365. You would need the sales figure to calculate the exact accounts receivable, but based on the options provided, $19,690 is the closest estimate.

Use the Tables for the Question(s)below