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Increased cost of funds tied up in accounts

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Bugle Boy Company has an opportunity cost of funds of 10 percent and a credit policy based on net 45 days. If all of its customers adhere to the stated terms and annual sales increase from $3.96 million to $5.82 million, what will be the increased cost of funds tied up in accounts receivable? (Use 365 days in a year. Do not round intermediate calculations. Round the final answer to the nearest whole dollar. Enter answer in whole dollar not in million.)

Reference no: EM132491670

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