Page 30 - A Level Business Studies - Financial Analysis Tasks

Task 2.f
Look at the trading section of the Income Statement and calculate the Rate of Inventory
Turnover

Income Statement - Trading Account Rate of
£ £ Inventory times

Sales Revenue 1,667,898 Turnover

Less Cost of Sales
Opening Inventory 98,678

Add Purchases 563,456

662,134

Less Closing Inventory 76,445 585,689

Gross Profit 1,082,209

Task 2.g

Look at the Income Statement and calculate the Rate of Inventory Turnover

Income Statement Rate of

£ £ Inventory times
Sales Revenue 150,000 Turnover

Less Cost of Sales

Opening Inventory 3,000
Add Purchases 79,000
82,000

Less Closing Inventory 7,000 75,000
Gross Profit 75,000

Less Expenses
Rent 12,000
Marketing 8,000
Insurance 700

Heat & Light 2,400
Internet / Phone 900
Stationery 2,000 26,000
Net Profit 49,000

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