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Hello…
I just need to clear something up.
In both example 2 and 3 in the workings part of the lecture…You wrote “current receivables and new receivables.”
Is that you simply calculating the receivables days ratio?and then
In order to calculate the average receivables, all you did was change the subject of the formula for the receivables days ratio.
Thanks!
I do not really understand what you mean.
In order to calculate both the old and the new receivables, I first calculated the average receivables days and then used that to calculate the average receivables.
Calculating the receivables days was part of the workings in order to be able to calculate the average receivables.
Yep. You confirmed exactly what I was looking.
Thanks! 🙂
Sorry for poor wording….
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