Part A A partial aging of accounts receivable for Lincoln Cleaning Services is g

Question

Part A A partial aging of accounts receivable for Lincoln Cleaning Services is given in the accompanying table. Fill in the missing parts of the following aging schedule for Lincoln Cleaning Services. (Round accounts receivable to the nearest whole dollar, e.g. 5,275 and % of total account to 1 decimal place, e.g. 12.2%.)

Part B Determine the firm’s effective days’ sales outstanding. (Round answer to 1 decimal places, e.g. 12.2.)

Lincoln's effective days' sales outstanding is _________ days

Part C How does it compare with the industry average of 28 days?

The firm is (more or less) efficient than other firms in the industry

Explanation / Answer

Part A

Lincolns effctive Days of ales outstanding = 53.35%*10+30.46%*30+1.94%*45+8.45%*60+75*8.41%

=24.77 Days

It is better than industry average and hence form is more effcient

10 303000 53.35% 30 173000 30.46% 45 11000 1.94% 60 48000 8.45% 75 33000 5.81% 568000

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