The following accounting information exists for Anjou and Bartlett companies at the end of 2010.

Required
a. For each company, compute the gross margin percentage and the average number of days to collect accounts receivable (use the net realizable value of receivables to compute the average days to collect accounts receivable).
b. In relation to cost, which company is charging more for its merchandise?
c. Which company is likely to incur higher financial costs associated with the granting of credit to customers? Explain.
d. Which company appears to have more restrictive credit standards when authorizing credit to itscustomers?

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Anjou Bartlett Cash Accounts receivable Allowance for doubtful accounts Merchandise inventory Accounts payable Cost of goods sold Sales S 25,000 70,000 260,000 10,000 150,000 200,000 630,000 650,000 1,000,000 105,000 5,000 75,000 80,000 475,000