By how much would accounts receivables decline


Problem: McNally INC. has sales of $1,000,000 million per year, all on credit terms calling for payment within 30 days, and its accounts receivable are $200,000. How much capital would be released if McNally could take actions that caused all of its customers making on time payments, with out affecting sales, i.e., by how much would its accounts receivables decline?

A) $117,808

B) $129,945

C) $135,145

D) $141,546

E) $153,467

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Finance Basics: By how much would accounts receivables decline
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