Based on the information for the following three companies
a) Compute the number of days' sales in receivables for 2X10 and 2X09 for each company assuming 365 days in a year
b) Analyze each company in accordance with a 45-day credit policy.
Herman Trenton Cramden
Net credit sales 2X10 $122,000 $98,000 $178,000
2X09 120,000 99,000 169,000
Cost of goods sold 2X10 54,000 44,000 78,000
2X09 51,000 39,000 61,000
Accounts receivable 2X10 14,000 21,000 19,000
(ending balance) 2X09 16,000 18,000 13,000
Inventory 2X10 26,000 19,000 9,000
(ending balance) 2X09 20,000 20,000 13,000