Sally's Sunglasses Case Summary

On the other hand, a recommendation to improve the financial position of Sally’s Sunglasses during the next Fiscal Year is to collect accounts receivable in a sooner period, since the expected period of time is within 30 days. However, according to the number of days sales in receivable ratio it took 47.24 days to actually collect them. A possible solution is provide customers a discount if they pay their debt within the period of 30 days. Another point to take into account is the fact that the number of days sales are in inventory it is too long, 82.60 days. This problem could be solved by lowering the number of inventory purchased so that the period of 82.60 day could be reduced into a more reasonable period of time and the company could