A company has credit turnover of NOK 10 million this year. 31.12.x1 this year, trade receivables were NOK 7.38 million. The company has seasonal operations so that 60% of credit sales take place in December, the other 40% is evenly distributed over the other months of the year. Accounts receivable 31.12.x0 was NOK 5.02 million. Normal credit period for credit sales is 30 days. Task: Calculate the average credit time this year.
A company has credit turnover of NOK 10 million this year. 31.12.x1 this year, trade receivables were NOK 7.38 million. The company has seasonal operations so that 60% of credit sales take place in December, the other 40% is evenly distributed over the other months of the year. Accounts receivable 31.12.x0 was NOK 5.02 million. Normal credit period for credit sales is 30 days. Task: Calculate the average credit time this year.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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A company has credit turnover of NOK 10 million this year.
31.12.x1 this year, trade receivables were NOK 7.38 million.
The company has seasonal operations so that 60% of credit sales take place in December, the other 40% is evenly distributed over the other months of the year.
Task: Calculate the average credit time this year.
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