This year's revenue is $2,000,0000 and the ACP is 75 days. Next year revenue is forecast to grow by 20% and the ACP (based on a year-end balance) is planned to improve to 60 days. What is the forecast for accounts receivable at the end of next year? (Use a 360-day year.)
A) $333,333
B) $500,000
C) $400,000
D) $416,667
Correct Answer:
Verified
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