Accounts receivable management An evaluation of the books of Blair Supply which follows gives the

QUESTION

1. Accounts receivable management An evaluation of the books of Blair Supply, which follows, gives the end-of-year accounts receivable balance, which is believed to consist of amounts originating in the months indicated. The company had annual sales of $2.4 million. The firm extends 30-day credit terms.Month of originAmounts receivableJuly$ 3,875August2,000September34,025October15,100November52,000December193,000Year-end accounts receivable$300,000a. Use the year-end total to evaluate the firms collection system.b. If 70% of the firms sales occur between July and December, would this affect the validity of your conclusion in part a? Explain.2.Common-size statement analysisA common-size income statement for Creek Enterprises 2011 operations follows. Using the firms 2012 income statement presented in Problem 318, develop the 2012 common-size income statement and compare it to the 2011 statement. Which areas require further analysis and investigation?Creek Enterprises Common-Size Income Statementfor the Year Ended December 31, 2011Sales revenue ($35,000,000)100.0%Less: Cost of goods sold65.9Gross profits34.1 %Less: Operating expensesSelling expense12.7%General and administrative expenses6.3Lease expense0.6Depreciation expense3.6Total operating expense23.2Operating profits10.9%Less: Interest expense1.5Net profits before taxes9.4%Less: Taxes (rate = 40%)3.8Net profits after taxes5.6%Less: Preferred stock dividends0.1Earnings available for common stockholders5.5%
How will i solve this? There is insufficient data. No current

assets, current liabilities etc are given

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