Tilbury Towers Limited's financial information for the year ended 28 February 20X4 included the following: What was the company's trade receivables collection period in days (to two decimal places)?

Question

Tilbury Towers Limited's financial information for the year ended 28 February 20X4 included the following:  What was the company's trade receivables collection period in days (to two decimal places)?

Quizplus · Accepted Answer

The trade receivables collection period in days can be calculated by dividing the trade receivables by the revenue for the year and multiplying the result by 365 (days in a year).
Trade receivables = £5,200
Revenue = £400,000
Trade receivables collection period = (5,200/400,000) x 365 = 4.745 days ≈ 43.7 days (rounded to two decimal places).
Therefore, the best choice is C.

Tilbury Towers Limited's Financial Information for the Year Ended 28