Notts Ltd's cost of sales on its statement of profit or loss for the ended 31 December 2020 is £105,066. Its inventory at 31 Dec 2019 is £6,430 and at 31 Dec 2020 is £5,757. Its trade payables at 31 December 2019 is £9,204 and at 31 December 2020 is £8,580. 6. Calculate the purchases for the year ending 31 Dec 2020 (a) £104,393 (b) £110,823 £105,317 (c) (d) £98,636 A company had the following assets and liabilities as at 31 December 2020: Share capital Trade and other payables Bank overdraft 20,000 15,000 10,000 18,000 20,000 35,000 18,000 Trade and other receivables Inventory Plant and equipment Long-term bank loan Calculate the working capital for the company as at 31 December 2020 (a) (ь) (c) (d) £33,000 £30,000 £13,000 £23,000

Notts Ltd's cost of sales on its statement of profit or loss for the ended 31 December 2020 is £105,066. Its inventory at 31 Dec 2019 is £6,430 and at 31 Dec 2020 is £5,757. Its trade payables at 31 December 2019 is £9,204 and at 31 December 2020 is £8,580. 6. Calculate the purchases for the year ending 31 Dec 2020 (a) £104,393 (b) £110,823 £105,317 (c) (d) £98,636 A company had the following assets and liabilities as at 31 December 2020: Share capital Trade and other payables Bank overdraft 20,000 15,000 10,000 18,000 20,000 35,000 18,000 Trade and other receivables Inventory Plant and equipment Long-term bank loan Calculate the working capital for the company as at 31 December 2020 (a) (ь) (c) (d) £33,000 £30,000 £13,000 £23,000

Name: Notts Ltd's cost of sales on its statement of profit or loss for the
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Description: Notts Ltd's cost of sales on its statement of profit or loss for the ended 31December 2020 is £105,066. Its inventory at 31 Dec 2019 is £6,430 and at 31Dec 2020 is £5,757. Its trade payables at 31 December 2019 is £9,204 and at31 December 2020 is £8

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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Concept explainers

Inventory Valuation

Before discussing the topic inventory valuation let’s discuss the meaning of inventory. In accounting, inventory is also known as stock. Inventory means all the finished goods, materials, merchandise that a business holds for the purpose of selling it in the market with the motive of earning profit.

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Question

Notts Ltd's cost of sales on its statement of profit or loss for the ended 31
December 2020 is £105,066. Its inventory at 31 Dec 2019 is £6,430 and at 31
Dec 2020 is £5,757. Its trade payables at 31 December 2019 is £9,204 and at
31 December 2020 is £8,580.
6.
Calculate the purchases for the year ending 31 Dec 2020
(a) £104,393
(b) £110,823
£105,317
(c)
(d) £98,636
A company had the following assets and liabilities as at 31 December 2020:
Share capital
Trade and other payables
Bank overdraft
Trade and other receivables
20,000
15,000
10,000
Inventory
Plant and equipment
Long-term bank loan
18,000
20,000
35,000
18,000
Calculate the working capital for the company as at 31 December 2020
(a) £33,000
(b)
(c)
(d)
£30,000
£13,000
£23,000

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