he AR period for 2021? 2020 2021 Sales $5,300 $5,900 Depreciation 750 850 COGS 2400 2900 Interest 180 196 Cash 200 500 Accts Receivables 200 400 Notes Payable 800
What is the AR period for 2021?
2020 2021
Sales $5,300 $5,900
COGS 2400 2900
Interest 180 196
Cash 200 500
Accts Receivables 200 400
Notes Payable 800 550
Long-term debt 1500 1950
Net fixed assets 3000 3500
Accounts Payable 250 400
Inventory 700 900
Dividend payout 30% 30%
Tax rate 35% 30%
The account Receivable days helps in understanding how much days is taken to receive cash from debtors . The number of day taken to collect cash determine effectiveness of business and managing cash conversion cycle.
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