The dollars figure plus the account receivable figure are determined by having the idea that the 30% of income in present-day month will likely be on funds, While the remaining 70% is going to be on credit history, the value of closing inventory will be calculated by having opening stock minus purchases which happen to be regarded as fifty% of the price of merchandise offered and minus the cost of goods sold to obtain the figure of closing stock, the overall of cash, account receivable and inventory gives The existing belongings to the thirty day period.
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