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  1. Action plan for managing accounts receivable

    Get the receivables under control. Step 1. Determine the overall limit of accounts receivable At the stage of the company’s financial strategy development and revision, it is important to determine the maximum possible amount of accounts receivables (AR). Calculation 1. Set the maximum share of AR in total assets. There is no universal formula: every company makes its own decision subject to risk assessment. For example, in the projected balance sheet, the total expected assets at the...