Modelling accounts receivable - solution

Download the Accounts Receivable solution file:

Although you can't tell from the solution case, I started with the balance corkscrew. I then added the other two calculation blocks.

I prefer to forecast the Accounts Receivable balance and then infer the cash flow in the period. I have also shown the alternative method.

The two calculation blocks follow exactly the calculation structure outlined in the assignment notes:

The cash flow received from invoices and the Accounts Receivable balances are exported to the financial statements.

There are no active error checks as the balance sheet now balances.

Don't forget to run your Section Completion checklist.

When performing your analytical review, try to test different values of accounts receivable days. What do you expect to happen when you increase this number? Decrease it? Set it to zero? Full test the calculation under different assumptions.


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