The following formula is involved in the calculation of investments in accounts receivable:
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Investments in accounts receivable:
where ACS is a company's annual credit sales and D is the average number of days taken by the company's customers to pay for their purchases.
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The following references can be used to cite this investment in accounts receivable calculator:
| Soper, D.S. (2019) "Investment in Accounts Receivable Calculator (Online Software)", http://www.danielsoper.com/fincalc. |
| Siegel, J. and Shim, J. (1997). "Schaum's Quick Guide to Business Formulas", New York, NY: McGraw-Hill. |