Accounting and Business Statistics

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Discussion Board Question, about 7 Wiley Plus questions and 5 business statistics questions on pearson my lab.

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The focus of Chapter 9 is on receivables - how receivables arise, how they are valued, issues with their collection, actions that can be employed to address collection issues, as well as key metrics used in evaluating the quality and collectability of receivables.

Required: Review the following scenario and respond to the questions that follow:

You recently assumed a position as Accounts Receivable Manager for a major office furniture distributor, Alpine Office. On your first day, the Controller, Jess Santoro, informs you that Alpine has (more recently) been experiencing some cash management issues. Jess asks you to sit in on a meeting with Alpine’s Sales Manager, Jack Valdez, to discuss the status of the company’s receivables. You are provided the following information just prior to the meeting:

Alpine's accounts receivable turnover has decreased from 10.0 times to 7.2 times over a 3-year period

Alpine's current ratio has increased from 2.5:1 to 3.5:1 over that same period

Alpine has experienced a 25% surge in sales; Jack Valdez approves all sales and extends credit to customers at his discretion

The sales personnel at Alpine have historically received their sales commission as soon as goods are delivered to the customer

Alpine's bad debt allowance has remained fairly consistent over the past 3 years

Questions:

1. At initial glance, does any of this information concern you? Why or why not?

2. What might be driving the trends you have been presented?

3. What additional information/reporting might you request in order to better assess the situation?

4. Assuming you conclude that there could be a potential collections issue, what actions might you recommend be taken to address the issue?