Cash DIscounts

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cash discounts

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  • Daily interest rateDaily Credit SalesCredit Sales to Customers using Discount (75%)Sales After DiscountNet payment received after Bad DebtsPV of sales to discount customers

    Credit Sales to Customers not using Discount (25%)Net payment received after Bad DebtsPV of sales to discount customers

    Variable CostsPV of Collection Expense

    ZValue of the business

  • 0.0359% Prorated 0.0384%136991027410068

    95659524

    342532533201

    9589270

    Rs. 2,866.62Rs. 7,983,991.15

  • NET 30Daily interest rate 0.0359%Daily Credit Sales 82192Net payment received after Bad Debts 78082PV of sales under net 30 76693

    Variable Costs 57534PV of Collection Expense 1615

    Z 17544Value of the business 48863800

  • NET 60Daily interest rate 0.0359%Daily Credit Sales 95890Net payment received after Bad Debts 90137PV of sales under net 60 87743

    Variable Costs 67123PV of Collection Expense 1867

    Z 18752Value of the business 52228408

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