answersLogoWhite

0


Want this question answered?

Be notified when an answer is posted

Add your answer:

Earn +20 pts
Q: How do you calculate collection period?
Write your answer...
Submit
Still have questions?
magnify glass
imp
Related questions

How do you calculate average daily collection?

hoe do u calculate average daily collection?


What is the average collection period?

The average collection period is the amount of time that is taken to recover money. Often the average collection period applies to business and sale-related circumstances.


How do you calculate the net trade cycle?

Calculated as follows: Average collection period+ Days inventory held- Days payable outstanding= net trade cycle


If the accounts receivable turnover ratio is decreasing what will happen to the average collection period?

Avg Collection Period increases.


How calculate total period cost?

A total period cost is anything that is not prepaid. To calculate period cost, just include anything that is charged in the period incurred.


calculate the average collection period using the following information:credit sales= 200 000cash sales= 150 000debtors= 500 000?

A: Calculating the average collection period is a critical financial metric that allows companies to gauge how long it takes to receive payments from their customers on average. This information is essential for businesses to manage their cash flow effectively and make informed decisions about credit policies and debt collection strategies. By staying on top of this metric, companies can maintain healthy financial stability and keep their operations running smoothly. This measure helps organizations to ensure adequate cash flow and make informed decisions about their financial health. This metric provides valuable insights into a company's financial health, allowing businesses to better manage their cash flow and improve their overall financial performance. It enables the company to keep track of its cash flow and make informed decisions about managing debtors and creditors. To calculate the average collection period, you would divide the total accounts receivable by the average daily sales. Using the information provided, we can calculate the credit sales by subtracting the cash sales from the total sales: Credit sales = Total sales - Cash sales Credit sales = $200,000 - $150,000 Credit sales = $50,000 Next, we can calculate the average daily sales by dividing the total sales by the number of days in the accounting period (for example, 365 days in a year, or 30 days in a month): Average daily sales = Total sales / Number of days Assuming a 30-day month, Average daily sales = $350,000 / 30 Average daily sales = $11,666.67 Finally, we can calculate the average collection period by dividing the total accounts receivable by the average daily sales: Average collection period = (Accounts receivable / Average daily sales) x Number of days Average collection period = ($500,000 / $11,666.67) x 30 Average collection period = 128.57 days Therefore, the average collection period for this company is approximately 128.57 days.


How do you calculate Average credit period?

average credit period


What is the formula to calculate the period of a wave?

you find the formula... then you calculate it. Its that simple.


Which of these is needed to be able to calculate the frequency?

period


What does a high average collection period indicate?

A high average collection period indicates that a firm is having trouble collecting its outstanding credit, thereby transferring it to their accounts receivables. It could be because of policy - maybe no fees, or the management in charge of collection is not doing their job.


How do you calculate your period?

every 29 to 31 days


Your cycle is between 35 to 40 days so how do you calculate your safe period?

period tracker