How High Can Accounts Receivable Be Allowed to Grow Before

question 39

Multiple Choice

How high can accounts receivable be allowed to grow before the firm's receivables period exceeds 50 days if annual sales equal $5 million and the cash conversion cycle equals 75 days?

• A)$342,466
• B)$684,932
• C)$1,027,397
• D)$1,712,329 receivables period =

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Definitions:

Acceptance of Change

The level at which individuals or organizations adapt to or embrace new policies, procedures, or environments without significant resistance.

Behavioural Science

An interdisciplinary field studying human actions and the internal and external factors influencing them, including psychology, sociology, and anthropology.

Organizational Change

Organizational change involves the process of modifying an organization's structure, strategies, operational methods, technologies, or organizational culture to effectuate change and achieve desired outcomes.

Systematic Collection

A methodical process of gathering data, resources, or items that is organized and structured to achieve specific objectives.