Incorporate and update the information given in the table to reflect the changes for the upcoming year.
Ratio Current Year Forecasted change for up coming year
Recivables/Sales 11.67% ?(a)
Inventories/Sales 20.00% ?(b)
a.) Due to the recent change in credit terms granted to clients, the current level of average collection period or DSO will be reduced to 35 in line with the industry average of 32.41.
b.) A relatively new inventory mgmt system that rearranged the orderly flow of plumbing parts has begun to yield positive improvement. This efficiency gain is expected to increase inventory turnover to 6 times annually.
I have to forecast the change for the upcoming year using this information...
Ratio Current Year Forecasted change for up coming year
Recivables/Sales 11.67% ?(a)
Inventories/Sales 20.00% ?(b)
a.) Due to the recent change in credit terms granted to clients, the current level of average collection period or DSO will be reduced to 35 in line with the industry average of 32.41.
b.) A relatively new inventory mgmt system that rearranged the orderly flow of plumbing parts has begun to yield positive improvement. This efficiency gain is expected to increase inventory turnover to 6 times annually.
I have to forecast the change for the upcoming year using this information...