See how long a generic company's receivables take to turn into cash.
$12,000
$146,000
30.0 days
A worked example for a generic company, not one of this chapter's own — no receivables balance was built into the bank reconciliation or petty cash scenarios.
turns a receivables balance into a time estimate: roughly how many days of sales are still sitting uncollected, at the rate the company sells.
A rising number, period over period, usually means collections are slowing down — worth watching well before it becomes a cash problem.