Appendix 1: Financial information Current year Previous year Turnover (£000) Net profit (£000) Average cash balances (£000) Average trade receivables days (industry average 30 days) 945 900 187 180 21 20 18 days 22 days Inflation rate (%) 3 3

Appendix 1: Financial information Current year Previous year Turnover (£000) Net profit (£000) Average cash balances (£000) Average trade receivables days (industry average 30 days) 945 900 187 180 21 20 18 days 22 days Inflation rate (%) 3 3

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Using the information in appendix 1 only, comment on the financial performance of the
business (briefly consider growth, profitability and credit management)

Appendix 1: Financial information
Current year
Previous year
Turnover (£000)
945
900
Net profit (f000)
187
180
Average cash balances (£000)
21
20
Average trade receivables days (industry average 30 days)
18 days
22 days
Inflation rate (%)
3

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