working capital cc
dingzheng
Registered Posts: 5 New contributor 🐸
the trade receivable collection period = trade receivable / sales * 365. that was what i was told. so the answer should be 274. But aat answer is 67.
I do think there might have some use of "assume each month has 30 days", but what really for.
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@dingzheng The extract is for a period of three months, not for one year. Using the assumption that each month has 30 days then the correct trade receivable collection period = Trade receivables/Revenue*90. The answer is 67.45 days (rounded down to 67 days)0

@davealucas, thanks for your help.
Would like to know, for those days, should round up or round down, ICS materials said need to round up as it is over 67 days. And the question did not say clearly up or down.0 
I would argue that you always round down when calculating days to payment or days to collect.0