Chapter 5, Problem 23DQ

To determine

Sales:

It is a very important part of the business as it helps in earning the business good profits. In simple words, sales affect the profitability of the business by helping business recovering excess over the cost to the business.

Receivables:

The receivable is the outstanding balance of the business which created due to the credit policies against the sale of goods by the business. These receivables indicate the policies and faster realisation of receivables helps in lowering the borrowing cost and recovery cost.

Asset Management:

This is the one which helps the businesses to measure and analyse the performance in terms of its effectiveness at the time of using the available resources of the business.

The reason of having the report on firm asset management by analyzing sales and receivables.