Looking for some clarification regarding Days Sales Outstanding/Receivables Collection Period formulas. In Becker B-3 p.65 this formula is part of the Cash Conversion Cycle and is shown as: Average Receivables / Average Sales per day.
On B-3 p.71 there is another formula referred to as Days Receivables Outstanding/Average Collection Period and is shown as: Ending Receivables / Average Daily Sales
Is the formula on p.65 solely for use in the calculating the Cash Conversion Cycle? In doing a little research on Google, it appears that people are using the terms “Days Sales Outstanding” and “Days Receivables Outstanding” interchangeably. Can somebody help distinguish these two formulas because using Average A/R compared to Ending A/R will obviously produce different results, so I'm thinking these are two different formulas. Thanks.
FAR - 81
AUD - 91
REG - 85
BEC - 80