Consider the following:
|
Income statement (extract)
|
2004
EUR
|
2003
EUR
|
2002
EUR
|
|
Sales
|
20,000
|
25,000
|
24,000
|
| |
|
Balance sheet (extract)
|
31 Dec, 2004
EUR
|
31 Dec, 2003
EUR
|
31 Dec 2002
EUR
|
|
Trade and other receivables
|
1,950
|
1,900
|
1,850
|
Of the total sales, 20 per cent are for cash.
Assuming that VAT is 20 per cent, determine the days to collect trade receivables for the years 2004 and 2003. Comment on the results.