(solution) A company’s sales total £600,000, its debtors £40,000 and its creditors £60,000. Which one of the…

(solution) A company’s sales total £600,000, its debtors £40,000 and its creditors £60,000. Which one of the…

A company’s sales total £600,000, its debtors £40,000 and its creditors £60,000. Which one of the following is correct? (a) Debtors collection period is 36.5 days and its creditor payment period is 24.3 days. (b) Debtors collection period is 24.3 days and its creditor payment period is 36.5 days. (c) Debtors collection period is 73 days and its creditor payment period is 36.5 days. (d) Debtors collection period is 46.6 days and its creditor payment period is 73 days.