Calculate Trade Receivables turnover ratio and average collection period from the following information : ₹ Total Revenue from operations 78,00,000 Revenue from sales on credit 65% Trade receivables at beginning of finan

₹ Total Revenue from operations 78,00,000 Credit Revenue (65% of Total Revenue) 50,70,000 Trade Receivables at beginning of financial year 5,00,000 Trade Receivables at end of financial year 7,00,000 Average receivables (5,00,000 + 7,00,000 / 2) 6,00,000 Trade Receivables Turnover Ratio = (Credit Revenue / Average Receivables) = (50,70,000 / 6,00,000) = 8.45 Average collection period = (365 / Trade Receivables turnover ratio) = (365 / 8.45) = 43 days (Approx.)