Find what proposed relaxation of credit standards result

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Red Company's budgeted sales for the coming year are P96 million, of which 80% are expected to be credit sales at terms of n/30. The company estimates that a proposed relaxation of credit standards would increase credit sales by 30% and increase the average collection period from 30 days to 45 days.

Problem 1: Based on a 360-day year, the proposed relaxation of credit standards would result to an accounts receivable balance of

Reference no: EM132757276

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