You have recently been hired to work in the accounts receivable department of Canadian Moonlighting Film Inc. (CMF). As part of your introduction and familiarization with the company, you are comparing the aging listings for accounts receivable and accounts payable as shown below:

Required:
(a) Analyze and comment on the accounts receivable and accounts payable aging listings for CMF.
(b) What can you conclude about your new employer's working capital management program based on these two aging listings?

Transcribed Image Text:

Accounts Receivable Aging Listing as at December 31, 2010 ($ thousands) Number of Days Outstanding 61-90 1,200 as at December 31, 2009 1,800 0-30 4,500 31-60 3,200 Over 90 600 Total 9,500 1,200 4,500 1,000 8,500 Accounts Payable Aging Listing as at December 31, 2010 ($ thousands) Number of Days Outstanding 61-90 200 as at December 31, 2009 300 0-30 1,500 31-60 2,000 Over 90 Total 1,800 5,500 600 900 700 2,500