The definition of a datum is a fact used to make a conclusion or a point of reference in geography or geology. An example of a datum is a new scientific discovery used to reach a conclusion about the common cold.
How do you estimate minimum cash balance for the company? 2 ways I heard about are: 1) keep it equal to cash balance on B/S and 2) based on Net Working Capital. Is any of those methods preferred? Is there any other school of calculation that? And, if NWC method, then what exactly do you include in calculation (like include or excl.
Answer: Most card issuers use the average daily balance method to calculate the minimum payment on credit cards. The actual math requires a calculator, but it can be explained in simple terms. The balance for each day is added up and then divided by the total number of days in the cycle.