Page 32 - A Level Business Studies - Financial Analysis Tasks

Task 3.b

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)
£ £ Payable Days Ratio Days
Sales Revenue 465,801

Less Cost of Sales
Opening Inventory (Stock) 23,167

Add Purchases 233,190

256,357
Less Closing Inventory (Stock) 21,678 234,679

Gross Profit 231,122

Statement of Financial Position (Extract) £ £
Less CURRENT LIABILITIES
Trade Payables (Creditors) 12,547

Unpaid Tax 500
Dividends 15,000 28,047

Task 3.c

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)
Payable Days Ratio Days
£ £
Sales Revenue 1,769,087

Less Cost of Sales
Opening Inventory (Stock) 17,668
Add Purchases 576,889
594,557

Less Closing Inventory (Stock) 13,134 581,423
Gross Profit 1,187,664

Statement of Financial Position (Extract) £ £
Less CURRENT LIABILITIES
Trade Payables (Creditors) 65,245
Unpaid Tax 500
Dividends 15,000 80,745

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