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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.
Suppose that the small country of Fiji is isolated from the rest of the world and no international trade occurs due to prohibitively high transportation costs. Amongst other things
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Question 1: Custom Wine Colorado Glasses of Leadville, Colorado, has just collected data from 75 defects from the day's production. a) As quality expert, you decide to con
Q. What do you mean by Trade payable days? Trade payable days (turnover) {Yearend trade payables / Credit purchases (or cost of sales)} x 365 days This is the length
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