Accounts receivable are P30,000 and the turnover rate is 24 times a year. As turnover rate of 18 times in one year is desired to increase by 25 %. The estimated accounts receivable to be maintained would be P

Accounts receivable are P30,000 and the turnover rate is 24 times a year. As turnover rate of 18 times in one year is desired to increase by 25 %. The estimated accounts receivable to be maintained would be P

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Conversion Cycle

Conversion cycle is also known as cash cycle or net operating cycle. Conversion cycle refers to how much time a company takes to turn its investments which is done from stock or any other financial resources into cash flows from sales.

Question

Accounts receivable are P30,000 and the turnover rate is 24 times
a year. As turnover rate of 18 times in one year is desired to
increase by 25 %. The estimated accounts receivable to be
maintained would be P

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