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if Debtors payment is 60 days then what is working capital
of software company ???
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Answer Posted / pramod gavali
if Debtors payment is 60 days (Current Assets)
Standard ratio is (C.A.) 2 : 1 (C.L.)
then Debtors = 2 ( 60 days)
working capital = C. A. - C.L.
so, 2-1 = 1
: 60 days - 30 days = 30 days payment
so working capital = 30 days payment
| Is This Answer Correct ? | 4 Yes | 2 No |
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