Page 39 - A Level Business Studies - Financial Analysis Tasks

Task 4.d
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 Ratio Days

Sales Revenue 208,911
Less Cost of Sales

Opening Inventory (Stock) 3,256
Add Purchases 102,334

105,590

Less Closing Inventory (Stock) 2,145 103,445
Gross Profit 105,466

Statement of Financial Position (Extract) £ £

CURRENT ASSETS
Inventory (Stock) 2,145
Trade Receivables (Debtors) 16,567
Cash & Cash Equivalents (Cash & Bank) 2,134

20,846

Task 4.e

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 2,545,612

Less Cost of Sales
Opening Inventory (Stock) 87,912
Add Purchases 1,434,276

1,522,188
Less Closing Inventory (Stock) 78,112 1,444,076
Gross Profit 1,101,536

Statement of Financial Position (Extract) £ £
CURRENT ASSETS
Inventory (Stock) 78,112
Trade Receivables (Debtors) 396,741
Cash & Cash Equivalents (Cash & Bank) 7,811
482,664

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