9. Question 14 Calculate and interpret liquidity ratiosCalculate the Average Collection period for 2018 and 2017 for the Better Books Company.Assuming that they have a 60-day credit policy, evaluate their accounts receivable management and recommend ways toimprove it.If a company has an average collection of 10 days, what might this indicate?Selected information ($)Net Sales (90% on credit)Accounts ReceivableAllowance for doubtfulaccountsBad debt expense2018830,000198,00030,90030,0002017620,000151,00022,50029,5002016540,000126,00012,00025,000

Average collection period is the period required to get amount of money from customers that they…

Calculate the Average Collection period for 2018 and 2017 for the Better Books Company. Assuming that they have a 60-day credit policy, evaluate their accounts receivable management and recomme improve it. If a company has an average collection of 10 days, what might this indicate? Selected information ($) Net Sales (90% on credit) 2018 830,000 2017 620,000 2016 540,000

Calculate the Average Collection period for 2018 and 2017 for the Better Books Company. Assuming that they have a 60-day credit policy, evaluate their accounts receivable management and recomme improve it. If a company has an average collection of 10 days, what might this indicate? Selected information ($) Net Sales (90% on credit) 2018 830,000 2017 620,000 2016 540,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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