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Financial Management

In 10 th sum Explain part b , how acc receivable , inventory are calculated? I cannot understand Why they mentioned A/R= sales in March *.8+ sale in Feb*.1 How they calculate. 0.8,0.1 in account receivable And in inventory also how they multiplying 0.6 with sales??

Sathiya Bama

CA Final

★ 23K+

20-May-22 10:38

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Answers (11)

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SAIRAM SANKITI

CA Final

★ 10K+

20-May-22 11:03

And that 0.6 is multiplying for eliminating internal profit

SAIRAM SANKITI

CA Final

★ 10K+

20-May-22 11:08

For elimination of internal profit

Sai Prasanna Ch

CA Inter

★ 20K+

20-May-22 11:17

SAIRAM SANKITI

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Sorry, i dint get please ð?¥º explain

Thread Starter

Sathiya Bama

CA Final

★ 23K+

20-May-22 11:30

Thread Starter

Sathiya Bama

Sorry, i dint get please ð?¥º explain

Also tell for inventory plz

Thread Starter

Sathiya Bama

CA Final

★ 23K+

20-May-22 11:31

SAIRAM SANKITI

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This is for avg ACC receivable.o/s debtors were March 80%(70 % collected in April &10% collected in May)and 10 %of Feb (collected in April) as per credit terms.

SAIRAM SANKITI

CA Final

★ 10K+

20-May-22 11:41

Inventory is calculated as op+pur-sales and in sales we should eliminate internal profits

SAIRAM SANKITI

CA Final

★ 10K+

20-May-22 11:41

What's the answer for the (iii) in the image This question is posted in the forum