sales of $$2\mathrm{.}40$ million and it normally extends $30-$day credit terms to its customers.

a$.$ Use the year$-$end total to evaluate the firm's collection system.

b$.$ If $70\%$ of the firm's sales occur between July and December, would this affect the validity of your conclusion in part a$?$ Explain.

a$.$ The average collection period is days. $($Round to two decimal places.$)$

Since the average age of receivables is about $16$ days beyond the net date, attention should be directed to accounts receivable management.

$($Select from the drop$-$down menu.$)$

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 turnover and higher average collection period.

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.

Data table

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a spreadsheet.$)$