Quiz Ch 15 – T/F Dimon Products’ Sales Projections and Accounts Receivable Balance Assumption
Fundamentals of Financial Management, Concise
Brigham and Houston
09th Edition
True or false: Dimon Products expects $5 million in sales this year, 90% on credit and 10% in cash. Future sales are projected to grow steadily at 10% annually. It is claimed that Dimon’s accounts receivable will stay constant because the 10% cash sales can support the 10% growth rate, assuming other factors remain unchanged.