Calculate the activity and liquidity ratios for P for the year ended31 December 20X9.RevenueGross profitInventoryTrade receivablesTrade payablesCashShort-term investmentsOther current liabilities$m1,867.5489.3147.9393.4275.153.86.2284.3Current ratio=Current assetsCurrent liabilitiesInventory daysInventory days = inventory+ cost of sales × 365Receivable daysReceivable days - receivables + credit sales x 365Payable daysPayable days = payables ÷ credit purchases x 365.

Activity ratios, like inventory turnover and accounts receivable turnover, measure how efficiently a…

Answered: Revenue Gross profit Inventory Trade…

Revenue Gross profit Inventory Trade receivables Trade payables Cash Short-term investments Other current liabilities Sm 1,867.5 489.3 147.9 393.4 275.1 53.8 6.2 284.3

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

Calculate the activity and liquidity ratios for P for the year ended
31 December 20X9.
Revenue
Gross profit
Inventory
Trade receivables
Trade payables
Cash
Short-term investments
Other current liabilities
$m
1,867.5
489.3
147.9
393.4
275.1
53.8
6.2
284.3
Current ratio=
Current assets
Current liabilities
Inventory days
Inventory days = inventory+ cost of sales × 365
Receivable days
Receivable days - receivables + credit sales x 365
Payable days
Payable days = payables ÷ credit purchases x 365.

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