Calculate the average collection period from the following details by adopting 360 days an year. Average...

 

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Calculate the average collection period from the following details by adopting 360 days an year. Average Inventory Debtors Inventory Turnover Ratio Cost of Machine Residual value Useful life 10,80,000 Gross Profit Ratio 6.90,000 Credit sales to total sales 6 Times 1 year Method of Depreciation in use After 8 years, the machine was revalued to Compute Depreciation 1,30,000 Nil 10 years Straight Line Method *80,000 10% 20% 360 days *30,000 is the annual instalment to be paid for three years (given present value of an annuity of 1 p.a. @ 5% interest is 2.7232). Ascertain the cash price in case of Hire Purchase. Calculate the average collection period from the following details by adopting 360 days an year. Average Inventory Debtors Inventory Turnover Ratio Cost of Machine Residual value Useful life 10,80,000 Gross Profit Ratio 6.90,000 Credit sales to total sales 6 Times 1 year Method of Depreciation in use After 8 years, the machine was revalued to Compute Depreciation 1,30,000 Nil 10 years Straight Line Method *80,000 10% 20% 360 days *30,000 is the annual instalment to be paid for three years (given present value of an annuity of 1 p.a. @ 5% interest is 2.7232). Ascertain the cash price in case of Hire Purchase.

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Average collection period Collection period Average inventorySales per day 1080000690000... View the full answer