Agassiz Inc. (Agassiz) provides commercial cleaning services. The company picks up items needing cleaning and returns them to the business within 48 hours. Agassiz invoices customers monthly and requires payment within 30 days. Over the last few years, the company has been growing fairly rapidly. You are provided with the following information about Agassiz:

Required:
You are the bank manager responsible for Agassiz’s loan. You have decided to have a look at how well the company has been managing its receivables in light of its recent growth. Calculate Agassiz’s accounts receivable turnover ratio and the average collection period for accounts receivable and use the information to prepare a report analyzing thesituation.

Transcribed Image Text:

2018 2017 2016 2015 Revenue-year ended June 30S1922,720 1,424250 $1,076,700S Accounts receivable June 30 261,800 165,624 122,28393,113