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Exercise

Debtor days ratio

The first ratio we will look at is debtor days. This ratio looks at how many days it takes to receive our money from our debtors. It is usually calculated over a period of 1 financial year.

The ratio is as follows:

\(Debtor\,Days = \frac{Ending\,Balance\,Debtors}{Sales} \times Days\,in\,Financial\,Year\)

The following information is available to you:

  • Sales for the year: 12,500 USD
  • Ending Debtors balance: 650

Instructions

100 XP
  • Create the variables for the ending debtors balance debtors_end, and the total sales for the year sales_tot.
  • Calculate the debtor days ratio ddays_ratio.
  • Print the result.