Xr15-12 Financial managers are interested in thespeed with which customers who make purchaseson… 1 answer below »

Xr15-12 Financial managers are interested in thespeed with which customers who make purchaseson credit pay their bills. In addition to calculat-ing the average number of days that unpaid bills(calledaccounts receivable) remain outstanding, theyoften prepare an aging schedule. An aging scheduleclassifies outstanding accounts receivable accord-ing to the time that has elapsed since billing andrecords the proportion of accounts receivablebelonging to each classification. A large firm hasdetermined its aging schedule for the past 5 years.These results are shown in the accompanying table.During the past few months, however, the economyhas taken a downturn. The company would liketo know whether the recession has affected theCopyright 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.598CHAPTER 15aging schedule. A random sample of 250 accountsreceivable was drawn and each account was classi-fied as follows_1= 0-14 days outstanding2= 15-29 days outstanding3= 30-59 days outstanding4= 60 or more days outstandingNumber of DaysOutstandingProportion of AccountsReceivable Past 5 Years0–14 .7215–29 .1530–59 .1060 and more .03Determine whether the aging schedule has changed