Delta Distributors has an investment in trade receivables of £2,750,000.Daily credit sales are £118,280.If 30% of Delta's credit customers receive a discount by paying within 10 days and the remainder of Delta's customers pay in 40 days,what is the net period that Delta maintains?

Question

Quizplus · Accepted Answer

The net period is calculated as a weighted average of the payment periods: (30% * 10 days) + (70% * 40 days) = 3 + 28 = 31 days.

Delta Distributors Has an Investment in Trade Receivables of £2,750,000