=+4. A company makes annual sales of 10m (excl. VAT) and is subject to VAT at a
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=+4. A company makes annual sales of €10m (excl. VAT) and is subject to VAT at a rate of 20%. Its actual collection time is 75 days. What is the average outstanding amount receivable? The payment period has to be reduced to 60 days for legal reasons.
How much extra cash will this mean for the company? What is the impact on the income statement if the company is currently borrowing at 4%?
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Related Book For 
Corporate Finance Theory And Practice
ISBN: 9781119424482
5th Edition
Authors: Pierre Vernimmen, Pascal Quiry, Maurizio Dallocchio, Yann Le Fur, Antonio Salvi
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