100% b. If the firm had $1,500,000 in credit sales over the four-month period, compute...
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100% b. If the firm had $1,500,000 in credit sales over the four-month period, compute the average collection period. Average daily sales should be based on a 120-day period. c. If the firm likes to see its bills collected in 35 days, should it be satisfied with the average collection period? d. Disregarding your answer to part c and considering the aging schedule for accounts receivable, should the company be satisfied? What additional information does the aging schedule bring to the company that the average collection neriad. e. Capital Management Age of Receivables April 30, 20X1 (1) (2) (3) (4) Percent of Amount Due Month of Sales April March February January Total receivables Age of Account 0-30 31-60 61-90 91-120 Amounts $ 131,250 93.750 112.500 37.500 $ 375,000 ********* 100%
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