# FSTP exam question

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How about Sales £/365 x no of days on average it takes to pay? £60,000/365 = £164.38 then £164.38 x 45 days = £7,397.10 average outstanding balance base don the 45 days repayment period. So, your £7,500 (ish) figure looks good to be.
• Registered Posts: 465 Dedicated contributor 🦉
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How about Sales £/365 x no of days on average it takes to pay? £60,000/365 = £164.38 then £164.38 x 45 days = £7,397.10 average outstanding balance based on the 45 days repayment period. So, your £7,500 (ish) figure looks good to be.
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OK
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Er my reply seems to have gone!! Rather than "OK" what I wanted to post was that it's 60000 due for the year, but because there's a 45 day delay in receiving all the receivables an easy way of visualising it is that 45 days after the year it's.all going to be in, on average. Thereby you have 45 days worth still due to you. This is 45 / 365 X 60000 which corresponds to answer above by welshwizard of just under 7500. In practice, with continuous sales and average days for repayment time remaining constant, while the receivables are being received, more sales are made in the second year so receivables balance is renewed staying approx the same through time