1. What are the 5 Cs of credit that are sometimes used by bankers and other creditors to determine whether a loan will be made? Why is character the most important?
2. Donalds Plumbing Supplies has annual sales of exist6, 025,000. Sixty percent are on credit. The firm has $585,000 in accounts receivable. Compute the value of the average collection period (be sure to read page 63 regarding days in the year for this calculation).