From the following information, calculate - 1. Trade receivables turnover ratio 2. Average collection period 3. Trade payable turnover ratio Given: Revenue from Operations 8,75,000 Creditors 40,000 Bills receivable 48,000 Bills payable 2,000 Purchases 4,20,000 Trade debtors 59,000

From the following information, calculate - 1. Trade receivables turnover ratio 2. Average collection period 3. Trade payable turnover ratio Given: Revenue from Operations 8,75,000 Creditors 40,000 Bills receivable 48,000 Bills payable 2,000 Purchases 4,20,000 Trade debtors 59,000

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter15: Financial Statement Analysis

Section: Chapter Questions

Problem 14BEA: Last year, Nikkola Company had net sales of 2.299.500,000 and cost of goods sold of 1,755,000,000....

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Loanable Funds Theory

The loanable funds theory is a neoclassical theory that determines the interest rate where the demand for loanable investments and supply of loanable funds intersect. To determine the interest rate, this theory employs linear regression and a demand curve. At the equilibrium point, demand for borrowings and demand for the issuance of borrowing funds are inextricably linked. This point of equilibrium should equalize demand and the supply of money available for borrowing.

Question

From the following information, calculate -
1. Trade receivables turnover ratio
2. Average collection period
3. Trade payable turnover ratio
Given:
Revenue from Operations 8,75,000
Creditors 40,000
Bills receivable 48,000
Bills payable 2,000
Purchases 4,20,000
Trade debtors 59,000

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