ALei Industries has credit sales of $146 million a year. ? ALei's management reviewed its credit policy and decided that it wants to maintain an average collection period of 4days.
a. What is the maximum level of accounts receivable that ALei can carry and have a 45?-day average collection? period?
The maximum level of accounts receivable will be
?$________ million. ?
b. If? ALei's current accounts receivable collection period is 60 ?days, how much would it have to reduce its level of accounts receivable in order to achieve its goal of 45 ?days? (Round to one decimal? place.)