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-Beginning Balance of $\mathrm{A} / \mathrm{R}=\$ 791 \mathrm{M}$
Year 2012 -Ending Balance of $\mathrm{A} / \mathrm{R}=\$ 807 \mathrm{M}$
Year 2012 - Sales $=\$ 3,002 \mathrm{M}$
Assumptions:
Sales growth will be equal to $6 \%$ per year
$\mathrm{A} / \mathrm{R}$ turnover will stay constant throughout the forecast period
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.