If Customers Pay Their Invoices on Average in 30 Days

question 33

Multiple Choice

If customers pay their invoices on average in 30 days and the company is projecting a 12% increase in its sales revenue next year from its current level of $5,657,500, how much more will it be carrying in accounts receivable next year?

• A) $3,100
• B) $94,292
• C) $55,800
• D) $93,000
• E) $1,131,500

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Definitions:

Diagnosis

The process of identifying and determining the nature of a problem, condition, or disease based on its symptoms or available data.

Stakeholder Task Force

A group consisting of individuals who have a vested interest in the outcome of a project or initiative, converging to guide decisions and actions.

Top Management

The highest level of managers within an organization, responsible for setting strategic goals and making crucial decisions.

Dictate

To give orders or instructions with authority, often without considering others' opinions or desires.