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Simora [160]
3 years ago
10

Dimon Products' sales are expected to be $5 million this year, with 90% on credit and 10% for cash. Sales are expected to grow a

t a stable, steady rate of 10% annually in the future. Dimon's accounts receivable balance will remain constant at the current level, because the 10% cash sales can be used to support the 10% growth rate, other things held constant.a. True.b. False.
Business
1 answer:
spin [16.1K]3 years ago
4 0

Answer:

given statement is false

Explanation:

increase in sale = 10 %

so here total sale is

sale = $5 million + 10%

sale = $5.5 million

and

cash sale is

cash sale = $5.5 million × 90%

cash sale = $4.95 million

so

credit sale is here as

credit sale = $5.5 million - $4.95 million

credit sale = $0.55 million

so here credit sale 0.5 million increased to 0.55 million

so 10% increase

hence regardless increase in cash sale is increase

so given statement is false

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