Page 33 - A Level Business Studies - Financial Analysis Tasks

Task 3.d
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 154,667

Less Cost of Sales
Opening Inventory (Stock) 2,145

Add Purchases 55,789
57,934
Less Closing Inventory (Stock) 3,345 54,589
Gross Profit 100,078

Statement of Financial Position (Extract) £ £
Less CURRENT LIABILITIES
Trade Payables (Creditors) 7,868
Unpaid Tax 1,000
Dividends 2,500 11,368

Task 3.e
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 2,461,234

Less Cost of Sales
Opening Inventory (Stock) 78,456
Add Purchases 1,009,557

1,088,013
Less Closing Inventory (Stock) 65,118 1,022,895
Gross Profit 1,438,339

Statement of Financial Position (Extract) £ £
Less CURRENT LIABILITIES
Trade Payables (Creditors) 74,589
Unpaid Tax 5,000
Dividends 150,000 229,589

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