Answer To Question
This query is : Resolved
18 August 2008
While deter ming net working capital Debtors are e valued at sale price or cost?
Ans.debtors are generally stated at selling price while calculating working capital
but they are taken at "total cost" while calculating "cash working capital" because "our" investment is the cost and profit embedded in debtors is not our investment.
Ans.debtors are generally stated at selling price while calculating working capital
but they are taken at "total cost" while calculating "cash working capital" because "our" investment is the cost and profit embedded in debtors is not our investment.
19 August 2008
Debtors are valued at the invoice value.
In any case the profit generated will be accounted towards your margin,
In any case the profit generated will be accounted towards your margin,
19 August 2008
While deter ming net working capital Debtors are e valued at sale price or cost?
Ans.debtors are generally stated at selling price while calculating working capital
but they are taken at "total cost" while calculating "cash working capital" because "our" investment is the cost and profit embedded in debtors is not our investment.
Ans.debtors are generally stated at selling price while calculating working capital
but they are taken at "total cost" while calculating "cash working capital" because "our" investment is the cost and profit embedded in debtors is not our investment.
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