With the Proper Changes It Is Believed That Ideko's Credit

question 10

Multiple Choice

With the proper changes it is believed that Ideko's credit policies will allow for an account receivables days of 60.The forecasted accounts receivable for Ideko in 2008 is closest to:

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

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Definitions:

Fixed Costs

Expenses that do not vary with the level of production or business activity within a certain range.

Price Elastic

A measure of how much the demand for a product or service changes in response to a change in its price.

Sales Volume

The number of units of a product or service sold by a company in a specified period.

Local Dealerships

Businesses authorized to sell and service vehicles from specific manufacturers within a designated geographic area.