Page 38 - A Level Business Studies - Financial Analysis Tasks
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Task 4.b
Look at the trading section of the Income Statement and the Current Assets section of the
Statement of Financial Position to calculate the Receivables Days Ratio.
Income Statement - Trading Account (Extract)
£ £ Receivables Days
Days Ratio
Sales Revenue 773,456
Less Cost of Sales
Opening Inventory (Stock) 12,434
Add Purchases 326,678
339,112
Less Closing Inventory (Stock) 14,356 324,756
Gross Profit 448,700
Statement of Financial Position (Extract) £ £
CURRENT ASSETS
Inventory (Stock) 14,356
Trade Receivables (Debtors) 27,909
Cash & Cash Equivalents (Cash & Bank) 6,123
48,388
Task 4.c
Look at the trading section of the Income Statement and the Current Assets section of the
Statement of Financial Position to calculate the Receivables Days Ratio.
Income Statement - Trading Account (Extract)
£ £ Receivables Days
Sales Revenue 2,154,567 Days Ratio
Less Cost of Sales
Opening Inventory (Stock) 87,908
Add Purchases 998,124
1,086,032
Less Closing Inventory (Stock) 78,112 1,007,920
Gross Profit 1,146,647
Statement of Financial Position (Extract) £ £
CURRENT ASSETS
Inventory (Stock) 78,112
Trade Receivables (Debtors) 245,123
Cash & Cash Equivalents (Cash & Bank) 12,668
335,903
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