For a zero-growth firm, it is possible to increase the percentage of sales that are made on credit and still keep accounts receivable at their current level, provided the firm can shorten the length of its collection period sufficiently.

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If a zero-growth firm can shorten the length of its collection period, it can receive payments more quickly and reduce the amount of time its accounts receivable are outstanding. This means the firm can increase the percentage of sales made on credit and still maintain its current accounts receivable balance. However, this assumes that the firm can effectively collect payment from its customers in a shorter period of time.

For a Zero-Growth Firm, It Is Possible to Increase the Percentage