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The hard cash determine along with the account receivable determine are based on taking the assumption that the thirty% of profits in latest thirty day period will probably be on money, Whilst the remaining 70% are going to be on credit, the value of closing inventory will be calculated by taking opening inventory minus buys that are regarded as fifty% of the price of merchandise offered and minus the price of items sold to find the determine of closing inventory, the whole of money, account receivable and inventory presents The present property for the month.
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This data is not quantitative though currently being only a verbal description of psychology of that person. You may also Get a quantitative datum for your psychology venture.
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