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cash operating cycle

This topic has 3 replies, 2 voices, and was last updated 10 years ago by John Moffat.

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April 5, 2015 at 5:26 pm #240209
chhaya
Member
- Topics: 10
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Could you please advise me on how to treat bad debts while calculating cash operating cycle.
For eg credit sales is 5,242,0000 and debtors are 545,000 before bad debts. Bed debts are 42,000. Do I need to take net amount after deducting bad debt?
Thanks
April 6, 2015 at 1:20 am #240249
John Moffat
Keymaster
- Topics: 57
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Yes – you would usually take the amount net of irrecoverable debts.
April 6, 2015 at 5:49 pm #240323
chhaya
Member
- Topics: 10
- Replies: 8
Thanks
April 7, 2015 at 1:27 am #240356
John Moffat
Keymaster
- Topics: 57
- Replies: 54807
You are welcome 🙂
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