Based on Case Study 1, find the Average Collection Period.

Let's calculate the values step-by-step:Calculate total Trade Receivables:
$$\text{Trade Receivables}=\text{Trade Debtors}+\text{Bills Receivable}$$
$$\text{Trade Receivables}=59,000+48,000=\text{Rs. }1,07,000$$
Calculate Trade Receivables Turnover Ratio (TRTR):
$$\text{TRTR}=\frac{\text{Revenue from Operations}}{\text{Trade Receivables}}=\frac{8,75,000}{1,07,000}\approx 8.1775\text{ times}$$
Calculate Average Collection Period:
$$\text{Average Collection Period}=\frac{365}{\text{TRTR}}=\frac{365}{8.1775}\approx 44.63\text{ days}\approx 45\text{ days}$$