If I know that a pet food store owed me $1,000 and went out of business, I might note this next to "Accounts Receivable".[1].
This makes their average account receivable about 3 months old.
Enter to cell A8, Accounts Receivable - Collected in 60 days (approx. 200 accts).
Enter to cell A50, Cash Sales Enter to cell A51, Accounts Receivable - Collected in 10 days, less 2%.
We then sold our $98 million portfolio of troubled receivables for 55¢ on the dollar, losing an additional $44 million.
Bank of Hawaii, a unit of the Pacific Century Financial Corporation, has about $226 million in receivables and 148,000 card customers.
What are some creative ways to collect on receivables over 30 days old?
Year-over-year trends show that inventory has increased by 10%; account receivables up 10.5%; finance receivables rose by 20.5%; finance debt has ballooned to 20%–all of which cannot be justified by the 6% growth in revenue.
To find the average collections period, simply multiply the receivables by 365 (the number of days in the year) and divide by credit sales.
Example: While the bank is the third-largest issuer of credit cards in the U.S., with $65 billion in managed receivables, only 2.6 million of its retail households (36%) have a Bank One credit card.
Enter to cell A5 the label, Cash Sales Projected Enter to cell A6, Accounts Receivable - Collected in 10 days, less 2%.
