According to its 2016 annual financial statements, Tree Island Steel Ltd. and its subsidiary companies supply a wide range of steel wire and fabricated steel products to customers in Canada, the United States, and internationally. Tree Island’s 2016 financial statements contained the following information, in thousands of Canadian dollars:

Required

a. How has the age mix of Tree Island’s receivables changed from 2015 to 2016?

b. What percentages of Tree Island’s accounts receivable were considered uncollectible in each of 2016 and 2015? Is the trend favourable or unfavourable?

c. Calculate Tree Island’s accounts receivable turnover rates for 2016 and 2015 using the ending balances of the receivables for each year rather than the average receivables. Is the trend favourable or unfavourable?

d. What was the average number of days taken by Tree Island to collect its accounts receivable in 2016? In 2015? If the company’s receivables are generally due on 30-day to 90-day terms, how is the company doing in terms of collecting its receivables on a timely basis?

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As at December 31, 2015 2016 Current 22,789 24,948 30 – 60 days past due 772 1,167 61 - 90 days past due 354 458 Over 91 days past due 807 1,110 Total accounts receivable 27,683 24,722 Allowance for doubtful accounts (259) (189) 27,494 Net accounts receivable 24,463 Sales 231,253 231,266