Since hiring a new sales director, Hilson Inc. has enjoyed a 50% increase in sales. The CEO has also noticed, however, that the company’s average collection period has increased from 17 days to 38 days. What might be the cause of this increase? What are the implications to management of this increase?
Answer to relevant QuestionsPine Corp. has experienced tremendous sales growth this year, but it is always short of cash. What is one explanation for this occurrence?During its first year of operations, Gehrig Company had credit sales of $3,000,000, of which $400,000 remained uncollected at year-end. The credit manager estimates that $18,000 of these receivables will become ...Lounow Distributors is a growing company whose ability to raise capital has not been growing as quickly as its expanding assets and sales. Lounow’s local banker has indicated that the company cannot increase its borrowing ...These transactions took place for Glavine Co.2013May 1 Received a $5,000, 12-month, 6% note in exchange for an outstanding account receivable from S. Rooney.Dec. 31 Accrued interest revenue on the S. Rooney note.2014May ...At December 31, 2013, Weiss Imports reported this information on its balance sheet.Accounts receivable $600,000Less: Allowance for doubtful accounts 37,000During 2014, the company had the following transactions related to ...
Post your question