Question

he current year financial statements of your health corporation reported sales of $177,526 million and accounts receivable of $12,164 million. if sales are projected to increase 4% next year, what is the projected accounts receivable balance for the following year? select one: a. $12,164 million b. $13,016 million c. $13,529 million d. $12,651 million e. $12,739 million

Answer 1

The projected accounts receivable balance, assuming a constant relationship between sales and accounts receivable, would be approximately $12,651 million after a 4% increase in sales. Therefore, the correct option is d. $12,651

Step-by-step explanation:

The student asks about the projected accounts receivable balance for the following year if sales are projected to increase by 4%.

To calculate the projected accounts receivable, we first find the projected sales amount. We take the current sales of $177,526 million and increase it by 4%, which gives us:

$177,526 million * 1.04 = $184,627.04 million (projected sales)

Assuming the relationship between sales and accounts receivable remains constant, we apply the same 4% increase to the current accounts receivable balance:

$12,164 million * 1.04 = $12,650.56 million (projected accounts receivable).

Therefore, the projected accounts receivable balance for the following year would be approximately $12,651 million, which corresponds to option d.