From analytical perspective, what adjustment do we need to do for EBIT? I found that the answer is to add uncollected amount of A.R. * Interest rate…but I don’t know why…so anyone could tell me the reason would be really appreciated
Depends on what purpose the analysis will be used for? Can you kindly provide more information? If the AR are not undoubtful and were adjusted before then … Needs more information to contextualise.