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Route Canal Shipping Company




Route Canal Shipping Company has the following schedule for aging of accounts;receivable...Please see below for table;a. Fill in column (4) for each month.;b. If the firm had $1,440,000 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 30 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?;e. What additional information does the aging schedule bring to the company;that the average collection period may not show?;Age of Receivables;30-Apr-07;1 2 3 4;Month of Sales Age of Account Amounts Percent of Amount Due;April 0-30 $105,000;March 31-60 $60,000;February 61-90 $90,000;January 91-120 $45,000;Total receivables $300,000 100%


Paper#31652 | Written in 18-Jul-2015

Price : $27