Question
Read the following information to answer the below
questions:Â Net Sales = 40,00,000 (20 % GP Element) out of which 40% is on credit. Opening Inventories were 60 % of closing inventories. Opening Receivables are 120,000. Receivables Velocity/average collection period of the company?Solution
365 days/ Receivables turnover ratio 365 days/ 6.92 times = 53 days
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