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Additional investment in accounts

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ABC Ltd currently has annual credit sales of $912,500 for which the average collection period is 30 days. If, in response to allowing the average collection period to increase to 40 days, sales increased by 10 percent, what would be the additional investment in accounts receivable? 1. $35,800. 2. $35,000. 3. $34,100. 4. $31,000.

Reference no: EM131781450

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