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What is the accounts receivable balance of bulldogs inc

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Question - Bulldogs Inc. has a variable cost ratio of 20% and a 10% receivable financing cost. The firm is planning to relax their credit standard. Under the proposed new credit standard, the investment in accounts receivable is P500,000. Bulldogs also observed that there is an increase of 25% in the carrying must of accounts receivable from the old credit standard to new credit standard. What is the Accounts receivable balance of Bulldogs Inc. under the old credit standard?

Reference no: EM133152928

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