TRADE RECEIVABLES (NET) Definition

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TRADE RECEIVABLES (NET) are all accounts from trade, net of allowance for doubtful accounts.

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ABC see ACTIVITY BASED COSTING.

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.

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