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John Moffat.
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kennigara
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My Dear Tutor, I have a question.Do we consider bad debts in cash flow forecast?
John Moffat
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Of course – you are calculating the cash received from receivables, and is some of the receivables turn out to be irrecoverable then you are not receiving the cash from these.
kennigara
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Bpp revision kit question 56 working capital finance.Why bad debt has not been considered in this example?
John Moffat
- Topics: 57
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It is exactly as I wrote in my previous reply.
The answer has only brought in 80 + 15 = 95% of the credit sales, because the other 5% is not received.
kennigara
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