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The current year financial statements of Your Health Corporation reported sales of $159,773 million and accounts receivable of $10,948 million. If sales are projected to increase 4% next year, what is the projected accounts receivable balance for the following year

Respuesta :

Answer:

$11,382.23

Explanation:

The computation of the projected account receivable balance is shown below;

Ratio of account receivable to sales is

= $10,948 ÷ $159,773

= 6.85%

Since the sales increased by 4% so the increased sales is

= $159,773 × 1.04

= $166,163.92

Now the account receivable is

= $166,163.92 × 6.85%

= $11,382.23

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