ALei Industries has credit sales of $151 million a year. ? ALei's management reviewed its credit...

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ALei Industries has credit sales of $151 million a year. ?ALei's management reviewed its credit policy and decided that itwants to maintain an average collection period of 40 days.
a.??What is the maximum level of accounts receivable that ALeican carry and have 40?-day average collection? period?
b.??If? ALei's current accounts receivable collection period is50 ?days, how much would it have to reduce its level of accountsreceivable in order to achieve its goal of 40 ?days?
Round to one decimal place.

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Formula for calculating day sales outstanding Day sales outstanding 365receivables turnover 40 365 receivables turnover receivables turnover 365 40 91250 See Answer

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ALei Industries has credit sales of $151 million a year. ?ALei's management reviewed its credit policy and decided that itwants to maintain an average collection period of 40 days.a.??What is the maximum level of accounts receivable that ALeican carry and have 40?-day average collection? period?b.??If? ALei's current accounts receivable collection period is50 ?days, how much would it have to reduce its level of accountsreceivable in order to achieve its goal of 40 ?days?Round to one decimal place.