Receivable collection periodForums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › Receivable collection periodThis topic has 3 replies, 3 voices, and was last updated 10 years ago by John Moffat.Viewing 4 posts - 1 through 4 (of 4 total)AuthorPosts March 24, 2015 at 1:08 pm #238582 arijetaParticipantTopics: 3Replies: 3☆HelloCan you please provide me with the solution of the problemJAM Co has inventory of $1M, cash of $0.5M, and current liabilities of $2.5M. They have sales of $50M, and a current ratio of 2.4. What is receivable collection period.Thank you March 24, 2015 at 3:51 pm #238593 dinaMemberTopics: 0Replies: 1☆hi, Arijeta, it is:CL=CA/CL=2.4, CA=Inv +cash+receivables; so 2.4=(1+0,5+receivables)/2.5 6=1,5+receivables, receivables=4,5.Receivales collection period=4,5/50*365=32,85 days March 24, 2015 at 3:57 pm #238594 arijetaParticipantTopics: 3Replies: 3☆Thanks March 24, 2015 at 5:10 pm #238603 John MoffatKeymasterTopics: 57Replies: 54628☆☆☆☆☆Arijeta: Dina’s answer is correct 🙂Dina: Thanks for answering although this is the Ask the Tutor Forum 🙂AuthorPostsViewing 4 posts - 1 through 4 (of 4 total)You must be logged in to reply to this topic.Log In Username: Password: Keep me signed in Log In