What will be level of accounts receivable

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Reference no: EM131991279

Profile Inc. has days sales outstanding (DSO) of 50 day and $650k in accounts receivable. The company wants to reduce its DSO to 25 days. To do this the company will pressure its customers to pay their bills sooner; however, if it adopts this policy, the firm’s average sales will decrease by 20%. Assume Profile implements the change, what will be the level of accounts receivable? Assume a 365-day year.

Reference no: EM131991279

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