80% of sales of 10,00,000 of a firm are on credit. It has a Receivable Turnover of 8. What is the Average collection period (360 days a year) and Average Debtors of the firm?

Related MCQs

• If the sales of the firm are . 60,00,000 and the average debtors are . 15,00,000 then the receivables turnover is
• In response to market expectations, the credit pence r j been increased from 45 days to 60 days. This would result in
• If the average balance of debtors has increased, which of the following might not show a change in general?
• If a company sells its receivable to another party to raise funds, it is known as
• Credit Policy of a firm should involve a trade-off between increased
• Working Capital Turnover measures the relationship of Working Capital with:
• Inventory Turnover measures the relationship of inventory with:
• In Inventory Turnover calculation, what is taken in the numerator?
• -Under a conservative financing policy a firm would use long-term financing to finance some of the temporary current assets. What should the firm do when a "dip" in temporary current assets causes total assets to fall below the total longterm financing?
• Your firm has a philosophy that is analogous to the hedging (maturity matching) approach. Which of the following is the most appropriate form for financing a new capital investment in plant and equipment?