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Use the percent of sales method of preparing pro forma financial statements to determine the projection for next years accounts receivable Make the following assumptions current years sales are

Use the "percent of sales method" of preparing pro forma financial statements to determine the projection for next year's accounts receivable. Make the following assumptions: current year's sales are $45,450,000; current year's cost of goods sold is $26,950,000; sales are expected to rise by 20%. The firm's investment in accounts receivable in the current year is $8,600,000. The firm's marginal tax rate is 35%. What is the projection for next year's accounts receivable?

a. $11,345,000

b. $10,320,000

c. $9,575,000

d. $8,772,000

 

Aug 14 2020 View more View Less

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