The trading account of Calypso for the year ended 30 June 20X0 is set out below:$$430,000SalesOpening inventoriesPurchases50,000312,500362,500Closing inventories(38,000)Cost of sales(324,500)Gross profit105,500The following amounts have been extracted from the company's statement of financialposition at 30 June 20X0.Trade receivablesPrepayments60,0004,0006,000Cash in handBank overdraft8,00040,000Trade payablesAccruals3,0005,000Declared dividendsCalculate the inventories days (using average inventories) and the current ratio forCalypso Ltd for the period.Inventory daysCurrent ratioA33 days1.25:1B49 days1.25:149 days1.93:1D33 days1.93:1

We have the following information: Sales : $430,000 Opening Inventories: $50,000 Purchases:…

The trading account of Calypso for the year ended 30 June 20X0 is set out below: 430,000 Sales Opening inventories Purchases 50,000 312,500 362,500 Closing inventories (38,000) Cost of sales (324,500) Gross profit 105,500 The following amounts have been extracted from the company's statement of financial position at 30 June 20X0. Trade receivables 60,000 4,000 Prepayments Cash in hand 6,000 8,000 Bank overdraft Trade payables Accruals 40,000 3,000 5,000 Declared dividends Calculate the inventories days (using average inventories) and the current ratio for Calypso Ltd for the period. Inventory days Current ratio A 33 days 1.25:1 B 49 days 1.25:1 49 days 1.93:1 33 days 1.93:1

The trading account of Calypso for the year ended 30 June 20X0 is set out below: 430,000 Sales Opening inventories Purchases 50,000 312,500 362,500 Closing inventories (38,000) Cost of sales (324,500) Gross profit 105,500 The following amounts have been extracted from the company's statement of financial position at 30 June 20X0. Trade receivables 60,000 4,000 Prepayments Cash in hand 6,000 8,000 Bank overdraft Trade payables Accruals 40,000 3,000 5,000 Declared dividends Calculate the inventories days (using average inventories) and the current ratio for Calypso Ltd for the period. Inventory days Current ratio A 33 days 1.25:1 B 49 days 1.25:1 49 days 1.93:1 33 days 1.93:1

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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