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working capital cycle

Forums › FIA Forums › MA2 Managing Costs and Finance Forums › working capital cycle

  • This topic has 2 replies, 2 voices, and was last updated 9 years ago by alihussain.
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  • June 15, 2015 at 1:59 pm #257005
    alihussain
    Member
    • Topics: 3
    • Replies: 15
    • ☆

    if a customer is allowed 6 days of credit but he pays in 3 days what are the debtor days in the calculation of working capital cycle

    June 16, 2015 at 12:12 pm #257270
    Ken Garrett
    Keymaster
    • Topics: 10
    • Replies: 10591
    • ☆☆☆☆☆

    Debtor days would be calculated using the actual days of credit taken, whether shorter or longer than the period allowed.

    June 17, 2015 at 3:57 am #257367
    alihussain
    Member
    • Topics: 3
    • Replies: 15
    • ☆

    thank you sir… for the explation

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