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Q. Explain about Trade receivable days?
{Yearend trade receivables / Credit sales (or turnover)} x 365 days
This is the average length of time occupied by customers to pay. A long average collection means poor credit control and henceforth cash flow problems may occur. Normal stated credit period is 30 days for most industries. Alterations in the ratio may be due to improving or worsening credit control. Major new customer pays fast or slow. Change in credit terms or early settlement discounts are offered to customers for early payment of invoices.
Q. Illustration of brand orientated divisional structure? The Whitbread Group Plc, have several independent divisions or SBUs managing its popular brands of hotels, restauran
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Q. Explain about Trade receivable days? {Yearend trade receivables / Credit sales (or turnover)} x 365 days This is the average length of time occupied by customers to pay
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