Answered step by step
Verified Expert Solution
Question
1 Approved Answer
A company has credit turnover of NOK 10 million this year. 31.12.x1 this year, trade receivables were NOK 7.38 million. The company has seasonal operations
A company has credit turnover of NOK 10 million this year. 31.12.x1 this year, trade receivables were NOK 7.38 million. The company has seasonal operations so that 60% of credit sales take place in December, the other 40% is evenly distributed over the other months of the year. Accounts receivable 31.12.x0 was NOK 5.02 million. Normal credit period for credit sales is 30 days.
Task: Calculate the average credit time this year.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started