Victoria Enterprises has $1.6 million of accounts receivable. The company's DSO is 40, its current assets are $2.5 million, and its current ratio is 1.5. The company plans to reduce its DSO to the industry average of 30 without causing a decline in sales. The freed-up cash will be used to reduce current liabilities. If the company succeeds, what will Victoria's new current ratio be?

1.26

Explanation:

Current ratio=1.5

DSO=40

DSO=Net sales/Average Accounts receivable

40=(Average Accounts receivable/Net sales)*365

1,600,000/(40/365)=Net sales

Net sales=$14,600,000

Revised DSO=30

(30/365)=Average Accounts Receivable-revised/$14,600,000

Average Accounts Receivable-revised=$1,200,000

Current Assets-Old Receivables+New Receivables= $2,500,000-1,600,000+1,200,000=$2,100,000

Current liabilities=2,500,000/1.5

Current liabilities=$1,666,667

Revised current ratio=$2,100,000/1,666,667

Revised Current ratio=1.26

b. a single paragraph.

a paragraph is a series of sentences that are organized and make sense, and are all related to a single topic . almost every piece of writing you do that is longer than a few sentences should be organized into paragraphs. this is because paragraphs show a reader where the subdivisions of an essay begin and end, and thus the reader see the organization of the essay into subjects in order to be able to understand its main points.

a recipe serves 8 people, and calls for 5 lbs of apples and 2 cups of flour. you want to prepare it for 24 people. divide 24 by 8 to get 3, and then multiply your ingredients by 3.

so for 24 people, you'll need 15 lbs of apples, and 6 cups of flour.