Determine days to collect trade receivables for year

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Reference no: EM131341083

Consider the following:

Income statement (extract)

2004

EUR

2003

EUR

2002

EUR

Sales

20,000

25,000

24,000

 

Balance sheet (extract)

31 Dec, 2004

EUR

31 Dec, 2003

EUR

31 Dec 2002

EUR

Trade and other receivables

1,950

1,900

1,850

Of the total sales, 20 per cent are for cash.

Assuming that VAT is 20 per cent, determine the days to collect trade receivables for the years 2004 and 2003. Comment on the results.

Reference no: EM131341083

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