ABC LTD's average trade receivables and trade payables for an accounting period are R12.5m and R18m respectively. Credit sales and credit purchases for the period are R210m and R78m respectively. The trade receivables collection period and the trade payables collection period are: 22 days and 84 days or 59 days and 31 days or 6.2 days and 11.7 days or 16.8 days and 4.3 days.
ABC LTD's average trade receivables and trade payables for an accounting period are R12.5m and R18m respectively. Credit sales and credit purchases for the period are R210m and R78m respectively. The trade receivables collection period and the trade payables collection period are: 22 days and 84 days or 59 days and 31 days or 6.2 days and 11.7 days or 16.8 days and 4.3 days.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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ABC LTD's average trade receivables and trade payables for an accounting period are R12.5m and R18m respectively. Credit sales and credit purchases for the period are R210m and R78m respectively. The trade receivables collection period and the trade payables collection period are: 22 days and 84 days or 59 days and 31 days or 6.2 days and 11.7 days or 16.8 days and 4.3 days.
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