Page 31 - A Level Business Studies - Financial Analysis Tasks
P. 31
Payable Days Ratio
Task 3.a
Look at the trading section of the Income Statement and the Current Liabilities section of the
Statement of Financial Position to calculate the Payable Days Ratio
Income Statement - Trading Account (Extract)
£ £
Sales Revenue 10,000
Less Cost of Sales
Opening Inventory (Stock) 1,000
Add Purchases 10,000
11,000
Less Closing Inventory (Stock) 3,000 8,000
Gross Profit 2,000
Statement of Financial Position (Extract) £ £
Less CURRENT LIABILITIES
Trade Payables (Creditors) 750
Unpaid Tax 1,000
Dividends 1,000 2,750
Payable Days Ratio Days
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