Many companies use accounts receivable aging schedules to project future cash inflows and bad-debt expense. Review the

Question:

Many companies use aging schedules to project future cash inflows and bad-debt expense. Review the information typically presented in such a report (see Figure 12-8). Which specific metrics can be calculated from those data that might be especially useful in providing early warning about looming cash flow or bad-debt problems?

Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...