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Pinecrest Company Use the selected data from Pinecrest Company's financial statements to answer the following question. Cash 2018 $ 22,000 2017 $ 14,000 Accounts receivable
Pinecrest Company Use the selected data from Pinecrest Company's financial statements to answer the following question. Cash 2018 $ 22,000 2017 $ 14,000 Accounts receivable Merchandise inventory Prepaid expenses Total current assets 42,000 16,000 22,000 83,000 23.000 18,000 $109,000 $131,000 Total current liabilities $65,000 $ 72,000 Net credit sales 221,000 326,000 Cost of goods sold 168,000 299,000 Net cash flow from operating activities 16,000 29,000 Refer to the data for Pinecrest Company. * . Competitors in Pinecrest Company's industry have an average accounts receivable turnover of 10.8 times. Pinecrest reported accounts receivable at December 31, 2018, of $42,000 and has normal credit terms requiring payment within 30 days. Pinecrest's accounts receivable turnover for 2018 is Oa. less than the industry, which means that its customers are paying on their accounts in a more timely manner than are customers reflected by the Industry average Ob. less efficient in its collection policies in 2018 than the Industry as a whole. Oc. of no value to bankers and other creditors. Od. Indicating that the company probably has stricter credit terms and policies than the industry as a whole, which may repel potential buyers
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