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Explain the term- Trade receivable days (turnover)
[Yearend trade receivables/Credit sales (or turnover)] x 365days
It is the average length of time taken 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.
Changes in the ratio may be because of improving or worsening credit control. Major new customer pays slow orfast. Change in credit terms or early settlement discounts are offered to customers for early payment of invoices.
What is the explanation for leaset cost selection
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I need a report on the topic Factors affecting Composition of Working Capital. Can you please assist me?
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discuss the applicability of an operating cycle of a vegetable growing business
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