Baird Company has noted that they have increased sales by 75% in the past two quarters and the sales manager is looking at the end of the year and anticipating a huge bonus because the sales figures are up. The operations manager is looking at the accounts receivable aging report and sees that the company's average collection period on accounts receivable as gone from 14 days to 48 days. What do you think can be the cause of this change and how would you (as operations manager) discuss the anticipated bonus with the sales manager?

Answer rating: 100% (QA)

The increase in sales and increase in average collection period on accounts receivable indicate that ... View the full answer