Route Canal Shipping Company has the following schedule for aging of accounts receivable: Age of Receivables April 30, 20X1 (3) Amounts (1) Month of Sales April March February January Total receivables Month of Sales a. Calculate the percentage of amount due for each month. April March February January (2) Age of Account 0-30 31-60 61-98 91-120 Total receivables Percent of Amount Due Average collection period $ 131,250 93,750 112,500. 37,500 $ 375,000 % 96 % 96 100 % (4) Percent of Amount Due b. If the firm had $1,500,000 in credit sales over the four-month period, compute the average collection period. Average dally credit sales should be based on a 120-day period. days 100%
Route Canal Shipping Company has the following schedule for aging of accounts receivable: Age of Receivables April 30, 20X1 (3) Amounts (1) Month of Sales April March February January Total receivables Month of Sales a. Calculate the percentage of amount due for each month. April March February January (2) Age of Account 0-30 31-60 61-98 91-120 Total receivables Percent of Amount Due Average collection period $ 131,250 93,750 112,500. 37,500 $ 375,000 % 96 % 96 100 % (4) Percent of Amount Due b. If the firm had $1,500,000 in credit sales over the four-month period, compute the average collection period. Average dally credit sales should be based on a 120-day period. days 100%
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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