Question
b. If 70% of the firm's sales occur between July and December, would this affect the validity of your conclusion in part a? (Select all
b. If
70%
of the firm's sales occur between July and December, would this affect the validity of your conclusion in part a? (Select all the answers that apply.)\ A. This may explain the lower tumover and higher average collection period.\ B. The year-end accounts receivable balance of
$299,835
may not be a good measure of the average accounts receivable, thereby causing the calculated average collection period to be overstated.\ C. The seasonality of sales also suggests the November figure (
0-30
days overdue) is not a cause for great concern.\ D. About
13%
of all accounts receivable (those arising in July, August and September) are sixty days or more overdue and may be a sign of poor receivables management.
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