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Average Creditors / Credit purchases = '?' x 360 = '?' ex. Average Creditors / Credit purchases = 50 000 / 120 000 x 360 = 0.4166 x 360 = 41.7 (average creditors = Creditors at the biginning of the year + creditors at the end of the year divided by 2) Average Creditors / Credit purchases = '?' x 360 = '?' ex. Average Creditors / Credit purchases = 50 000 / 120 000 x 360 = 0.4166 x 360 = 41.7 (average creditors = Creditors at the biginning of the year + creditors at the end of the year divided by 2)
What else can I help you with?
How to calculate the cash cycle for a business?
To calculate the cash cycle for a business, subtract the average payment period from the average collection period. The cash cycle represents the time it takes for a business to convert its investments in inventory and other resources back into cash.
Where can I find a monthly payment calculator for a mortgage?
Mortgage payment calculators are available on the web. Calculating the period of the mortgage in years against interest it will describe the term and total of repayments. It will also calculate overpayments
What is the meaning of dividends?
The meaning of a dividend is a certain amount of money paid to an account on a regular basis. This can be payment to creditors, payment from stocks, bonds or any source of income.
What is it called when creditors add finance charges after subtracting payment?
It is called sacrificing chickens to the great god Steve.
When should a stockholder receive payment if a company declares bankruptcy?
A stockholder should receive payment only after the claims of the creditors have been paid off if that company declares bankruptcy.
What is Creditors Collection Period?
The creditors' payment period is an activity ratio. It measures the average amount of days the business takes to pay its creditors i.e. suppliers. The more days available to pay the better.
How do you calculate average payment period?
Creditors/credit purchase per dayOrAPP. The number of days a company takes to pay off credit purchases. It is calculated as accounts payable / (total annual purchases / 360).
Who is especially interested in the average payment period?
The average payment period is particularly of interest to creditors and financial analysts. Creditors use this metric to assess how effectively a company manages its payables and to evaluate its liquidity and cash flow management. Investors may also analyze this figure to understand a company's financial health and operational efficiency. Additionally, management teams monitor it to optimize working capital and payment strategies.
What side of ledger is payment to creditors?
credit
Transaction that will decrese an asset anf decrease a liability?
Payment to the creditors Creditors Decrease Bank balance decrease
How do you calculate the Principal repaid after a period of time on a loan?
get the difference of interest rate and monthly periodic payment
Letter of credit definition in Philippine terms?
A Letter of Credit can be issued in the Philippines as a way to ensure that payment will be made to creditors. If the beneficiary does default on his payment, his bank will pay his creditors what is owed.
What kind of information do I need to calculate the monthly payments on my loan?
You monthly payment on a loan is largely based on your monthly income. usually you are expected to pay 15% percent of you income to you debtors or creditors.
How do you calculate creditor's turnover?
There are two ways to calculate Creditors Turnover. First is using the COGS (Cost of Goods Sold) as the basis. Creditors Turnover = COGS / Creditors (A/c Payables) . Second is the more common method which uses Sales as the basis. Creditors Turnover = Net Sales / Creditors (A/c Payables).
When do you stop paying your creditors once you have retained a bankruptcy attorney?
The debtor should cease payment of creditors when they decide they are going to file for bankruptcy.
Which US President filed chapter 13 due to a failed business and was required to repay his creditors over a period of 17 years?
Abraham Lincoln whom, in 1833, filed for bankruptcy due to a failed business and was required to repay his creditors over a period of 17 years. The current chapter 13 isn't that long anymore; it requires 5 years of payment.
How to calculate DP ratio?
Stock+debtors-creditors/sale
