11

Routs Canal Shipping Company has the fo4towing schedule for aging of accounts receivable: a. Calculate the percentage of amount due for each month. b. If the firm had $1.536.000 in credit sates over the four-month period, compute the average collection period. Average daily sales should be based on a 120-day period. Average collection period days. c. If the firm likes to see its bills collected in 38 days. should it be satisfied with the average collection period? Yes No d. Disregarding your answer to parte c and considering the aging schedule for accounts receivable should the company be satisfied? Yes No