Page 40 - A Level Business Studies - Financial Analysis Tasks

Task 4.f

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 645,812

Less Cost of Sales
Opening Inventory (Stock) 6,124

Add Purchases 254,912
261,036
Less Closing Inventory (Stock) 6,819 254,217
Gross Profit 391,595

Statement of Financial Position (Extract) £ £
CURRENT ASSETS
Inventory (Stock) 6,819
Trade Receivables (Debtors) 21,678
Cash & Cash Equivalents (Cash & Bank) 2,134
30,631

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