ACCOUNTING TERMS - ACCOUNTING DICTIONARY - ACCOUNTING GLOSSARY
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CREDIT MEMO Definition
CREDIT MEMO is a document used to issue a vendor credit.
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WORKING CAPITAL DAYS OF NET SALES measures how many days of net revenue are tied up in working capital. It is calculated: Working Capital Days of Net Sales = Working Capital / Net Revenue * 365. Low values tend to show problems in ability to support sales while high values may indicate under-capitalization problems.
AVERAGE AGE OF INVENTORY is calculated by the formula: 365 / inventory turnover.