can anyone tell me...
When We calculate debtors In estimation of Working capital...
sometime we calculate on the basis of COP and sometimes on the basis of Sales...
How????
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Working Capital
Replies (4)
We calculate it on cost of production generally but when specifically given then only use sales price.
thnxxxxx
Working capital is calculated on Cost of production
COP = sales - gross profit
But in some cases WC can be calculated on Sales where we don't know about Gross profit.
COP = sales - gross profit
But in some cases WC can be calculated on Sales where we don't know about Gross profit.
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