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
icon
Related questions
Question
ces
Route Canal Shipping Company has the following schedule for aging of accounts receivable:
(1)
Month of Sales
April
March
February
January
Total receivables
Month of Sales
April
March
a. Calculate the percentage of amount due for each month.
February
January
Age of Receivables April 30, 20X1
(3)
Amounts
Total receivables
(2)
Age of Account
10-30
31-60
61-98
91-120
Percent of
Amount Due
Average collection period
196
$ 131,250
93,750
112,500
37,500
$ 375,000
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%
Transcribed Image Text:ces Route Canal Shipping Company has the following schedule for aging of accounts receivable: (1) Month of Sales April March February January Total receivables Month of Sales April March a. Calculate the percentage of amount due for each month. February January Age of Receivables April 30, 20X1 (3) Amounts Total receivables (2) Age of Account 10-30 31-60 61-98 91-120 Percent of Amount Due Average collection period 196 $ 131,250 93,750 112,500 37,500 $ 375,000 100 % (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%
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps with 4 images

Blurred answer
Similar questions
Recommended textbooks for you
Essentials Of Investments
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
FUNDAMENTALS OF CORPORATE FINANCE
FUNDAMENTALS OF CORPORATE FINANCE
Finance
ISBN:
9781260013962
Author:
BREALEY
Publisher:
RENT MCG
Financial Management: Theory & Practice
Financial Management: Theory & Practice
Finance
ISBN:
9781337909730
Author:
Brigham
Publisher:
Cengage
Foundations Of Finance
Foundations Of Finance
Finance
ISBN:
9780134897264
Author:
KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:
Pearson,
Fundamentals of Financial Management (MindTap Cou…
Fundamentals of Financial Management (MindTap Cou…
Finance
ISBN:
9781337395250
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Finance
ISBN:
9780077861759
Author:
Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:
McGraw-Hill Education