Which of the following would be the best revision of these sentences? “Our present receivables are in line with last year’s. However, they exceed the budget. The reason they exceed the budget is that our goal for receivable investment was very conservative. A. “Receivables are in line with last year’s. They exceed the budget. Our goal for receivable investment was very conservative.” B. “The receivable investment was very conservative.” C. “Our present receivables are in line with last year’s because they exceed the budget.” D. “Our present receivables, while in line with last year’s, exceed the budget because our goal for receivable’s days out was too aggressive.”

I would say not ‘C’, because it would be irresponsible to purposely budget inaccurately. And not ‘B’ because it confuses the budgeted goal with actual results.

I would also eliminate ‘A’ because, though it could be correct in a sense, it also means an inaccurately low receivables goal was budgeted two years in a row when more could easily be purchased, as the results have proven.

The answer would be ‘D’ which depicts receivables in excess of those budgeted because the goal for collecting them was too aggressive (a good way to set goals: aggressively).

I would infer that your business is factoring or some kind of receivables financing.

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