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Business, 09.11.2019 05:31 Thejollyhellhound20

Gartshore, inc., is a mail-order book company. the company recently changed its credit policy in an attempt to increase sales. gartshore's variable cost ratio for obtaining credit is 70% and its required rate of return is 12%. the company projects that annual sales will increase from the current level of $360,000 to $432,000, but the average collection period on receivables will go from 30 to 40 days. ignoring any tax implications, what is the cost of carrying additional investment in accounts receivable, using a 360-day year?

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Gartshore, inc., is a mail-order book company. the company recently changed its credit policy in an...
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