Pomico Inc

Multiple Choice

Pomico Inc. has $350,000 of receivables on its books as of July 31ˢᵗ, 20% over the month's budget. To assist in determining whether this is due to an increase in credit sales in the month, one or two larger accounts lagging in payment, or a problem with all collections, what should the manager do?

A) Update and analyze the cash flow statement.
B) Calculate the average collection period for receivables.
C) Review the payments of companies granted credit in July.
D) Create a report on the pattern of credit sale cash receipts.
E) Produce an aging schedule of receivables.