Use the "percent of sales method" of preparing pro forma financial statements to determine the projection for next year's accounts receivable. Make the following assumptions: current year's sales are $55,750,000; current year's cost of goods sold is $25,350,000; sales are expected to rise by 25%. The firm's investment in accounts receivable in the current year is $12,600,000. The firm's marginal tax rate is 35%. What is the projection for next year's accounts receivable? $10,320,000 $11,345,000 O $15,750,000 $8,772,000
Use the "percent of sales method" of preparing pro forma financial statements to determine the projection for next year's accounts receivable. Make the following assumptions: current year's sales are $55,750,000; current year's cost of goods sold is $25,350,000; sales are expected to rise by 25%. The firm's investment in accounts receivable in the current year is $12,600,000. The firm's marginal tax rate is 35%. What is the projection for next year's accounts receivable? $10,320,000 $11,345,000 O $15,750,000 $8,772,000
Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter21: Supply Chains And Working Capital Management
Section: Chapter Questions
Problem 11P: Negus Enterprises has an inventory conversion period of 50 days, an average collection period of 35...
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![Use the "percent of sales method" of preparing pro forma financial statements to determine the
projection for next year's accounts receivable. Make the following assumptions: current year's
sales are $55,750,000; current year's cost of goods sold is $25,350,000; sales are expected to
rise by 25%, The firm's investment in accounts receivable in the current year is $12,600,000.
The firm's marginal tax rate is 35%. What is the projection for next year's accounts
receivable?
$10,320,000
$11,345,000
O $15,750,000
$8,772,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F4d9f036e-8e9e-4b53-a30d-4091afb339b3%2Fd6b9cf5b-70bf-48e9-a95e-7017395fb6ff%2Fbshocbl_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Use the "percent of sales method" of preparing pro forma financial statements to determine the
projection for next year's accounts receivable. Make the following assumptions: current year's
sales are $55,750,000; current year's cost of goods sold is $25,350,000; sales are expected to
rise by 25%, The firm's investment in accounts receivable in the current year is $12,600,000.
The firm's marginal tax rate is 35%. What is the projection for next year's accounts
receivable?
$10,320,000
$11,345,000
O $15,750,000
$8,772,000
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