ocr: Debtors lurnover Period L (E6,000) E900 X 365 L 54.75 days Hove and Barclay really need to examine their credit policies betore they can deduce whether this ratio is acceptable or not. If they only: intend to grant customers 30 days credit then clearly they, can be seen to be failing toc collect in the monies due within this time scale. If, however, they allow 60 days, they are obviously running their credit control department efficiently and roughly in line with their stated policy.
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