Agriculture Reference
In-Depth Information
Plate 10.2
Grocery inventory
Monitoring inventory levels and the collection of accounts receivable are critical when managing
an agribusiness. Photo courtesy of USDA.
Table 10.3
Account aging schedule
Period
Outstanding
Accounts Receivable
Percentage
of Total
This Period
Percentage
of Total
Last Period
Percentage
Change
Less than 30 days
$672,000
42
41
2.4
30-60 days
560,000
35
34
2.9
61-90 days
256,000
16
17
(5.9)
Over 90 days
112,000
7
8
(12.5)
Total
$1,600,000
100
100
percentage of accounts that are slow paying, or increasing amounts of receivables, calls
for additional emphasis on the collection of accounts receivable and a review of the
credit program and credit policies before the situation becomes dangerous to the fi rm's
fi nancial health.
Percentage change in credit sales
:
credit sales for the current period divided by the credit
sales for a previous period
. This ratio can also be used to assist in monitoring changes
in accounts receivable. In order to put the accounts receivable situation for the fi rm into
