Receivable collection 60 days, outstanding amount end of 2013 £567300.How much was purchased in 2013

gabriellenlewis

Please explain.

mybuddy

This statement means that on an average, purchases are paid in 60 days.
So, £ 567300 outstanding at 2013 end means purchases of 60 days = £ 567300.
So, purchases for the whole year = £ 567300 * 360/60 = £ 3403800 ( assuming 360 days in a year )
Purchases for 2013 = £ 3403800