Rare Finds is a national distributor of unusual crafts and home dcor items. It sells merchandise to gift shops and specialty retailers in over twenty states. Management uses interactive maps, like the one below, to analyze the collection of the companys receivables. The map represents more profitable customers with larger dots, and represents average days to collect by color. Green dots represent shorter collection times and red dots represent longer collection times.

Each city's data is listed as below:

1. According to the map, the average days to collect ranges from 23.83 to 53.88.

Which location has the shortest average days to collect?

Which location has the longest average days to collect?

A _______ (higher/lower) number of days to collect is better for Rare Finds.

2. Customers in Jacksonville, FL have an average number of days to collect of 36.5.

Using this rate of collection, calculate the receivables turnover ratio for these customers.

If the industry average receivables turnover is 9.5, do customers in Jacksonville, FL pay faster or slower than the industry average?

Average Receivables Turnover in Jacksonville, FL _________ times.

Customers in Jacksonville, FL pay _______ (faster/slower) than the industry average.

3. According to the map, does there seem to be a relationship between customer profitability and average days to collect?

A. No, there is not a relationship between customer profitability and collection times.

B. Yes, more profitable customers generally have shorter collection times.

C. Yes, more profitable customers generally have longer collection times.

4. If the entire receivable balance in Minneapolis, MN is attributable to one company, and management decides to write off the receivable balance because it is judged uncollectible, what effect will the write-off have on Rare Finds Total Assets? On its Net Income?

Total Assets ___________

Net Income ____________

Rare Finds Collection Analysis by Customer Reqion Rare Finds Collection Analysis by Customer Reqion