The Following Information About Douglas Corp $\mathrm { A } / \mathrm { R } = \$ 791 \mathrm { M }$

Essay

The following information about Douglas Corp.'s Accounts Receivable and Sales are presented below:
Year 2012-Bepining Balance of $\mathrm { A } / \mathrm { R } = \$ 791 \mathrm { M }$
Year 2012 -Eaflin Balance of $\mathrm { A } / \mathrm { R } = \$ 807 \mathrm { M }$
Year $2012 -$ Sales $= 33,002 \mathrm { M }$
A5sumptians:
Sales growth will be equal to $6 \%$ per year
A/R turnover will stay canstant thraughout the farecast periot
Required: a.Using this information,forecast Douglas Corp.'s the growth in Accounts Receivable for years 2013-2017.
b.What problem does a constant A/R turnover assumption cause?
c.Provide a solution to the problem caused by a constant A/R turnover assumption.