Explore BrainMass

Explore BrainMass

    Managerial Finance

    Not what you're looking for? Search our solutions OR ask your own Custom question.

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    Route Canal Shipping Company

    Please see attachment for table.

    a. Fill in column (4) for each month.
    b. If the firm had $1,440,000 in credit sales over the four-month period, compute
    the average collection period. Average daily sales should be based on a
    120-day period.
    c. If the firm likes to see its bills collected in 30 days, should it be satisfied with
    the average collection period?
    d. Disregarding your answer to part c and considering the aging schedule for
    accounts receivable, should the company be satisfied?
    e. What additional information does the aging schedule bring to the company
    that the average collection period may not show?

    © BrainMass Inc. brainmass.com December 24, 2021, 4:56 pm ad1c9bdddf


    Solution Summary

    This question involves the fundamentals of finance.