Analysis:

Analyze how well $3$D Family Fireworks manages its receivables.

$($a$)$ Calculate the receivables turnover ration for the month of January $($Hint: for the numerator use total services provided to customers on account$).$ If the industry average of the receivables turnover ratios for the month of January is $4\mathrm{.}2$ times, is the company collecting cash from customers more or less efficiently than other companies in the same industry?

$($b$)$ Calculate the ratio of allowance for uncollectible accounts to accounts receivable at the end of january, does the company expect an improvement or worsening in cash collections from customers on credit sales?