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Open the file Answer sheet, provided by your assessor and answer the following questions. You will need to keep this document open throughout your assignment.

4. When finished place your printed material inside your exam and place on desk in front.

The first thing you need to do is save a copy of this document, either onto your computer or a USB drive

Remember that your exam must be typed in a Word document. Do not save your work as Word 2007. The exam can either be submitted as an attachment through WebCT or a hardcopy can be submitted to me in my office before 5:00 pm on November 20. Completed exams will be accepted at

Submit your document in a Word (.doc or .docx) or Rich Text Format (.rtf) for best compatibility.

1. This is a closed book exam. You may only have pens, pencils , a calculator and one cheat sheet double sided on 8 ½ by 11 paper at your desk.

Answer: Aging schedules definitely help a company keep track of which of its customers are paying on time, and are useful in figuring cash flow. In this case, it is apparent that the majority of accounts receivable by the end of March are less than 30 days old (80.8%). By the end of June, that percentage goes down to 63.7%. By the end of March, 19.2% of accounts receivable are between 30-60 days old, and by the end of June, there is 36.3%. 0% of accounts receivable get to be over 60 days old, which indicates payment.

Accounts receivable are amounts owed by customers on account. They result from the sale of goods and services on credit. These receivables are generally expected to be collected within 30 to 60 days. They are typically the most significant type of claim held by a company. Accounts receivable and notes receivable resulting from sales are also known as trade receivables. Accounts receivable resulting from sales are referred to as trade receivables in Alcatel's financial statements.

Identifying the Unit, Assessment Number, student name, student number, date and page number (preferably) in the Footer

The Lawsons’ efficiency ratios are another section the bank will find troubling. The company’s age of payables has nearly tripled over the last four years. This can be detrimental to the company’s image and reliability including their reliability toward the bank if granted the loan. Along with increasing age of payables is increasing age of receivables and age of inventory. Indicating that Mr. Mackay is taking longer to collect his receivables and that he has purchased too much inventory. Too much inventory results can result in further issues

Moreover, from the analyse tab and the function “Age”, an aging of the Accounts Receivable was performed.

When an account receivable is determined to be uncollectable it is no longer qualified as an asset and should be written off. A write off reduced the balance of the customers

Tighten up collection of receivables so that receivables account for less than 19% of Sales (1985). Pursue more aggressive strategy of collections;

11. Accounts receivable turnover and days sales in accounts receivable for the last three years:

Nonetheless, an improvement in age of receivables for a single company over multiple periods suggests a company is becoming more efficient or effective at managing its receivables (Bujaki & Durocher, 2012; Gibson, 2011).