cash

This topic has 3 replies, 2 voices, and was last updated 7 years ago by John Moffat.

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December 20, 2018 at 8:16 pm #492401
kennigara
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My Dear Tutor, I have a question.Do we consider bad debts in cash flow forecast?
December 21, 2018 at 7:11 am #492413
John Moffat
Keymaster
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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.
December 21, 2018 at 8:12 am #492417
kennigara
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Bpp revision kit question 56 working capital finance.Why bad debt has not been considered in this example?
December 22, 2018 at 7:58 am #492485
John Moffat
Keymaster
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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.
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