Calculate: (iv) Average Receivable days/ Debtors collection period(v) Average Payable days/ Creditors collection period As at year to 31 Dec.2018As at year to 31 Dec.2019Statement of financial position£000£000£000£000Non-current assets2,9556,000Current assets7501200450InventoryReceivables - trade900PrepaymentsCash901052,0708,070751,515154,470Issued share capitalShare premium accountRetained earnings9009003003001,6502,8501,1252,325on-current liabilities10% loan notesCurrent liabilities1,5003,000Payables – tradeAccruals2,100120570756452,2204,4708,07011:32re to search4) ENG28/04/202 A Read aloudV DrawD HighlightErase(D Page viewFor the year ended31 Dec. 2018For the year ended31 Dec. 2019£000£000£000£000Sales revenue4,8006,000Cost of sales450Opening inventoryPurchases1,2002,7004,8005,250(900)3,900(4,350)Less: Closing inventoryGross profitOperating expensesFinance cost(450)(3,450)1,350(600)(150)1,650(675)(300)Net profit600675As at year to 31 Dec.2018As at year to 31 Dec.2019Statement of financial position£0006,000£000£000£000Non-current assets2,955Current assets450InventoryReceivables – trade900907501200105PrepaymentsCash1,5154,4702,0708,0707515Issued share capitalShare premium account90090030030011:28/04nere to searchN) ENG

Average Receivable days/ Debtors collection period = Average Accounts receivableAnnual Total Salesx…

Answered: Calculate: (iv) Average Receivable…

Calculate: (iv) Average Receivable days/ Debtors collection period (v) Average Payable days/ Creditors collection period

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

Calculate:

(iv) Average Receivable days/ Debtors collection period
(v) Average Payable days/ Creditors collection period

As at year to 31 Dec.
2018
As at year to 31 Dec.
2019
Statement of financial position
£000
£000
£000
£000
Non-current assets
2,955
6,000
Current assets
750
1200
450
Inventory
Receivables - trade
900
Prepayments
Cash
90
105
2,070
8,070
75
1,515
15
4,470
Issued share capital
Share premium account
Retained earnings
900
900
300
300
1,650
2,850
1,125
2,325
on-current liabilities
10% loan notes
Current liabilities
1,500
3,000
Payables – trade
Accruals
2,100
120
570
75
645
2,220
4,470
8,070
11:32
re to search
4) ENG
28/04/202

A Read aloud
V Draw
D Highlight
Erase
(D Page view
For the year ended
31 Dec. 2018
For the year ended
31 Dec. 2019
£000
£000
£000
£000
Sales revenue
4,800
6,000
Cost of sales
450
Opening inventory
Purchases
1,200
2,700
4,800
5,250
(900)
3,900
(4,350)
Less: Closing inventory
Gross profit
Operating expenses
Finance cost
(450)
(3,450)
1,350
(600)
(150)
1,650
(675)
(300)
Net profit
600
675
As at year to 31 Dec.
2018
As at year to 31 Dec.
2019
Statement of financial position
£000
6,000
£000
£000
£000
Non-current assets
2,955
Current assets
450
Inventory
Receivables – trade
900
90
750
1200
105
Prepayments
Cash
1,515
4,470
2,070
8,070
75
15
Issued share capital
Share premium account
900
900
300
300
11:
28/04
nere to search
N
) ENG

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