Dimon Products' sales are expected to be $5 million this year, with 90% on credit and 10% for cash.Sales are expected to grow at a stable, steady rate of 10% annually in the future.Dimon's accounts receivable balance will remain constant at the current level, because the 10% cash sales can be used to support the 10% growth rate, other things held constant.

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Accounts receivable will increase by 10%.that percentage increase would occur regardless of the level of the cash sales.Even if cash sales were 90%, receivables would still increase by 10% under the assumptions in the questtion.

Dimon Products' Sales Are Expected to Be $5 Million This