Use the Table for the Question(s)below

question 46

Multiple Choice

Use the table for the question(s) below.
Pro Forma Income Statement for Ideko,2005-2010
-With the proper changes it is believed that Ideko's credit policies will allow for an accounts receivable days of 60.The forecasted accounts receivable (in 000's) for Ideko in 2007 is closest to:

• A)$14,525.
• B)$16,970.
• C)$22,710.
• D)$19,690.

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Definitions:

Sales Discounts

A reduction in the price of a product or service that is offered to a customer to encourage timely payment.

Accounts Receivable

Money owed to a business by its clients or customers for goods or services provided on credit, recognized as an asset on the balance sheet.

List Price

The manufacturer's suggested retail price (MSRP) or the price at which a product is intended to be sold before any discounts or promotions.

Additional Expenses

Costs incurred by a business that are not directly related to its primary operations, such as unusual or unforeseen expenditures.