9. Barney's Antique Shop has annual credit sales of $1,620,000 and an accounts receivable balance of $157,500. Calculate the average collection period (use 360 days in a year). 10. Mervyn's Fine Fashions has an average collection period of 50 days. The accounts receivable balance is $95,000. What is the value of its credit sales? Intermediate Problems 11. Route Canal Shipping Company has the following schedule for aging of accounts receivable: a. Fill in column (4) for each month. Part 3 Working Capital Management Age of Receivables April 30, 20X1 (1) (2) (3) (4) Percent of Month of Sales Age of Account Amounts Amount Due April 0-30 $131,250 March 31-60 93,750 February January 61-90 91-120 112,500 Total receivables 37,500 $375,000 100% ordering b. C. If the firm had $1,500,000 in credit sales over the four-month period, com- pute the average collection period. Average daily sales should be based on a 120-day period. If the firm likes to see its bills collected in 35 days, should it be satisfied with the average collection seriel? d. Disregarding your answer to posed 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? 12. Nowlin Pipe & Steel has projected sales of 72,000 pipes this year, an ordering cost of $6 per order, and carrying costs of $2.40 per pipe. a. What is the economic ordering quantity? b. How many orders will be placed during the year? What will the overage inventory be?