ACTIVITY 1 The information below was extracted from the financial records of Sunrise Traders S Sun and R Rise as partners REQUIRED 1 Use the information to calculate the following: 1 Current ratio 2 Acid test ratio 3 Stock turnover rate 4 Period of stock on hand 5 Debtors' collection period 6 Creditors' payment period 2 Comment on the results. INFORMATION 2012 390 000 910 000 2013 420 000 980 000 75% of sales 75% of sales 40 000 58 000 27 000 74 000 6 000 30 days 60 days Sales - credit sales cash sales Cost of sales Trading stock Debtors control Bank-favourable Creditors control Accrued expense Credit terms for debtors Credit terms for creditors 36 000 54 000 23 800 78 000 2 400 30 days 60 days The ratios for 2012 are as follows: 2012 1,4:1 0,96:1 20 times per year 20 days 45 days 29 days Current ratio Acid test ratio Stock turnover rate Stock holding period Debtors collection period Creditors payment period

ACTIVITY 1 The information below was extracted from the financial records of Sunrise Traders S Sun and R Rise as partners REQUIRED 1 Use the information to calculate the following: 1 Current ratio 2 Acid test ratio 3 Stock turnover rate 4 Period of stock on hand 5 Debtors' collection period 6 Creditors' payment period 2 Comment on the results. INFORMATION 2012 390 000 910 000 2013 420 000 980 000 75% of sales 75% of sales 40 000 58 000 27 000 74 000 6 000 30 days 60 days Sales - credit sales cash sales Cost of sales Trading stock Debtors control Bank-favourable Creditors control Accrued expense Credit terms for debtors Credit terms for creditors 36 000 54 000 23 800 78 000 2 400 30 days 60 days The ratios for 2012 are as follows: 2012 1,4:1 0,96:1 20 times per year 20 days 45 days 29 days Current ratio Acid test ratio Stock turnover rate Stock holding period Debtors collection period Creditors payment period

Name: ACTIVITY 1The information below was extracted from the financial reco
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Description: ACTIVITY 1The information below was extracted from the financial records of Sunrise Traders,S Sun and R Rise as partnersREQUIRED1Use the information to calculate the following:1 Current ratio2 Acid test ratio3 Stock turnover rate4 Period of stock on

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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OFFON

ACTIVITY 1
The information below was extracted from the financial records of Sunrise Traders,
S Sun and R Rise as partners
REQUIRED
1
Use the information to calculate the following:
1 Current ratio
2 Acid test ratio
3 Stock turnover rate
4 Period of stock on hand
5 Debtors' collection period
6 Creditors' payment period
2 Comment on the results.
INFORMATION
2013
420 000
2012
390 000
910 000
Sales
credit sales
cash sales
980 000
Cost of sales
Trading stock
Debtors control
Bank - favourable
Creditors control
Accrued expense
Credit terms for debtors
Credit terms for creditors
75% of sales 75% of sales
36 000
54 000
23 800
78 000
40 000
58 000
27 000
74 000
6 000
30 days
60 days
2 400
30 days
60 days
The ratios for 2012 are as follows:
2012
1,4:1
0,96:1
20 times per year
20 days
45 days
29 days
Current ratio
Acid test ratio
Stock turnover rate
Stock holding period
Debtors collection period
Creditors payment period
55 Accounting Grade 11 - CAPS

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