In Question 54.2, if Sales collection period: 1.5 months, why is the Receivables = 1610000/2 and not 900000/2 + 1610000?
Hello Afonso,
The collection period is 1.5 months and, from the rationale you gave, I think you were wrongly assuming 1.5 quarters. At the end of the year, the company will have in its balance sheet receivables from the previous 1.5 months or, in other words, receivables from the 2nd half of the 4th quarter. That is why the answer is 1 610 000 / 2.
Good study!
The collection period is 1.5 months and, from the rationale you gave, I think you were wrongly assuming 1.5 quarters. At the end of the year, the company will have in its balance sheet receivables from the previous 1.5 months or, in other words, receivables from the 2nd half of the 4th quarter. That is why the answer is 1 610 000 / 2.
Good study!
True, I didn't take into account that we were looking at quarters.
Many thanks!
Many thanks!