Activity Ratios Flashcards
1
Q
Creditor Days=
A
Trade Creditors
———————- TIMES 365
Cost of sales
2
Q
Debtor Days=
A
Trade Receivables (Debtors)
—————————————- TIMES 365
Sales
Creditor Days=
Trade Creditors
———————- TIMES 365
Cost of sales
Debtor Days=
Trade Receivables (Debtors)
—————————————- TIMES 365
Sales