Set up the following spreadsheet comparing Vong and Crist Companies:
a. For each company, compute gross profit, gross profit percentage, net realizable value, accounts receivable turnover, and average days to collect.
b. In relation to cost, which company is charging more for its merchandise?
c. Which company is likely to incur higher financial costs associated with granting credit to customers? Explain the reasons for your answer.
d. Which company appears to have more restrictive credit standards when authorizing credit to customers? How do you know?