(1) Debtors turnover ratio (2)Creditors turnover ratio (3) Average collection period sales 875000 bills receivable 48000 purchases 420000 creditor 90000 bills payable 52000 debtors 59000
Answers
Answered by
0
Answer:
Average debtors = (Rs. 40,000 + Rs. 1,20,000)/2 = Rs. 80,000
Cash sales = 20% of total sales
= Rs. 4,00,000 x 20%
= Rs. 80,000
Net credit sales = Total sales - Cash sales
= Rs. 4,00,000 - Rs. 80,000
= Rs. 3,20,000
Debtors turnover ratio = Net credit sales/Average debtors
= Rs. 3,20,000/Rs. 80,000
= 4 Times
Explanation:
please mark me as brainlist
Similar questions