Do you know why the readings in the CFAI is using different formulas for the “number of days of receivable formula”?
e.g. in the FRA section the formula is “# days receivables= 365/receivalbes turnover”
and in the Corporate Finance section “# days receivables= Account receivables/ (Sales on Credit/365)”
using both formulas i get almost the same solution (differences in decimals) but i wonder which formule is more effective for CFA exam.
Thank you for your time