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Trendy Traders Reported Total Sales Amounting to $1,000,000 in the Year

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Trendy Traders reported total sales amounting to $1,000,000 in the year 2015, of which 80% were on credit. At 31 December, customers owed $100,000. If the firm operates for 365 days a year, how long, on average, does it take to collect money from its debtors?


Definitions:

Independent Variable

A variable that is manipulated or categorized to observe its effect on the dependent variable in experimental research.

Slope

The measure of the steepness or incline of a line, representing the rate of change of one variable with respect to another.

Intercept

In statistics and mathematics, the point at which a line crosses the vertical axis of a graph, indicating the value of the dependent variable when all independent variables are zero.

Predicted Income

An estimate of future earnings based on variables such as education, experience, and other relevant factors, often derived using statistical models.

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