Analyzing Billings and Collections

The following is an adapted excerpt from Results-Oriented Financial Management.  This analysis shows the changes that will occur in the accounts receivable reconciliation portion of the budget. Note that the collections were budgeted at $4,799,094. As a result of the reduction in billings, assuming the 65-day time-to-collect period can be maintained, receipts will be reduced by $189,560, making the new…

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