A company currently has $10,000,000 in accounts receivable and has day sales outstanding (DSO) of...
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A company currently has $10,000,000 in accounts receivable and has day sales outstanding (DSO) of 60 days. The company wants to reduce its DSO to the industry average of 45 days by pressuring more of its customers to pay their bills on time, but if this policy is adopted the company's average sales will fall by 20%. Assuming a 360-day year and that the company adopts this change, succeeds in reducing its DSO to 45 days, and does lose 20% of its sales, what will be the level of accounts receivable following the change? Answer without a $ sign, without a + or sign, and without decimal places
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