Question
Western Windows constructs and installs windows for new homes. The sales staff are having a meeting and reviewing the following information to determine how to
Western Windows constructs and installs windows for new homes. The sales staff are having a meeting and reviewing the following information to determine how to help reduce days sales uncollected.
2020 | 2019 | 2018 | ||||||||
Accounts receivable | $ | 651,750 | $ | 426,750 | $ | 367,000 | ||||
Net sales | 6,640,000 | 5,739,000 | 5,005,000 | |||||||
Required: a. Calculate the days sales uncollected for 2018 to 2020 and identify whether the trend is favourable or unfavourable. (Round the final answer to 2 decimal places. Do not round intermediate calculation. Use 365 days a year.)
b. What can a salesperson do to improve days sales uncollected? (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer.)
- Decreasing the ratio of sales by encouraging more cash sales.unanswered
- Increasing the ratio of sales by encouraging more cash sales.unanswered
- Applying stricter credit policies to eliminate credit sales to customers that never pay.unanswered
- Applying lenient credit policies to eliminate credit sales to customers that never pay.unanswered
- Identifying customers most delayed in their payments and encouraging earlier payments or cash sales.unanswered
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