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malabranche13 malabranche13
wrote...
Posts: 478
4 years ago
Commercial Supply Corp. bills its accounts on terms of 2/10 net 30. The firm's accounts receivable include $200,000 that has been outstanding for ten or fewer days, $126,000 outstanding for 11 to 30 days, $98,000 outstanding for 31 to 40 days, $12,000 outstanding for 41 to 50 days, $20,000 outstanding for 51 to 60 days, and $7000 outstanding for more than 60 days. Is the aging schedule for Commercial Supply Corp. bottom heavy?

▸ No, since since the percentage of payments that are late are greater than the percentage of payments that are on time.

▸ Yes, since the percentage of payments that are late are greater than the percentage of payments that are on time.

▸ No, since 70% of the outstanding sales are on time and the percentage of long term outstanding payments is low.

▸ cannot tell from the information given
Textbook 
Fundamentals of Corporate Finance

Fundamentals of Corporate Finance


Edition: 2nd
Authors:
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wrote...
4 years ago
No, since 70% of the outstanding sales are on time and the percentage of long term outstanding payments is low.
malabranche13 Author
wrote...
4 years ago
This calls for a celebration Person Raising Both Hands in Celebration
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