The dollar change in receivables

Assignment Help Financial Management

Reference no: EM131599634

Suppose that last year a firm had a DSO of 35 days and annual revenues equal to $10,000,000. The treasury department has made it a goal to reduce the DSO to 30 days, while holding constant revenues. If this reduction is realized, then calculate the following:

a. The dollar change in receivables

b. The change in the OC and CCP given that next year's DIH and DPO are expected to equal 45 days and 75 days, respectively.

Reference no: EM131599634

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