please help with practice problems 4. Financial ratios in the forecasting processYour boss has asked you to take a closer look at your company's credit policies. You have been given the following information:Accounts receivable balance:$660,000Average daily sales:$13,111Weighted average cost of capital: 12%Your firm's days sales outstanding (DSO) isYour boss is unhappy with your company's DSO and wants to bring it down to the industry average of 25 days. The marketing department told youthat they expect sales to grow by 14% next year. This means that your company can expect to have an accounts receivable balance ofnext year.

Accounts Receivable Balance = ar = $660,000Average Daily Sales = s = $13,111

4. Financial ratios in the forecasting process Your boss has asked you to take a closer look at your company's credit policies. You have been given the following information: Accounts receivable balance: Average daily sales: Weighted average cost of capital: $660,000 $13,111 12% Your firm's days sales outstanding (DSO) is Your boss is unhappy with your company's DSO and wants to bring it down to the industry average of 25 days. The marketing department told you that they expect sales to grow by 14% next year. This means that your company can expect to have an accounts receivable balance of next year.

4. Financial ratios in the forecasting process Your boss has asked you to take a closer look at your company's credit policies. You have been given the following information: Accounts receivable balance: Average daily sales: Weighted average cost of capital: $660,000 $13,111 12% Your firm's days sales outstanding (DSO) is Your boss is unhappy with your company's DSO and wants to bring it down to the industry average of 25 days. The marketing department told you that they expect sales to grow by 14% next year. This means that your company can expect to have an accounts receivable balance of next year.

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter3: Analysis Of Financial Statements

Section: Chapter Questions

Problem 15SP

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