TASK 1 : AMOUNTS TAKEN FROM STATEMENT OF FINANCIAL POSITION Bank Year 1: 60,000 Pounds Year 2: 66,000 Pounds Accounts receivable Year 1: 15,000 Pounds Year 2: 10,000 Pounds Inventory Year 1: 30,000 Pounds Year 2: 34,000 Pounds Petty cash Year 1: 1,000 Pounds Year 2: 1,000 Pounds AMOUNTS TAKEN FROM INCOME STATEMENT Sales Year 1: 120,000 Pounds Year 2: 136,000 Pounds Assuming that 50 percent of all sales are made on credit, what is the accounts receivable turnover of the business in year 2? a) 4.53 b) 6.8 c) 10.88 d) 5.44 ? TASK 2 AMOUNTS TAKEN FROM STATEMENT OF FINANCIAL POSITION Bank Year 1 60,000 Pounds Year 2 66,000 Pounds Accounts receivable Year 1 15,000 Pounds Year 2 10,000 Pounds Inventory Year 1 30,000 Pounds Year 2 34,000 Pounds Petty Cash Year 1 1000 Pounds Year 2 1,000 Pounds AMOUNTS TAKEN FROM INCOME STATEMENT Sales Year 1 120,000 Pounds Year 2 136,000
Pounds Cost of sales Year 1 30,000 Pounds Year 2 35,000 Pounds What is the inventory holding period of the business in year 2? Select one ... a) 1.09 days b) 334 days c) 354 days d) 0.91 days TASK 3 Cost of sales divided by average inventory is the................ ratio ? One answer a) b) c) or d)? a) inventory turnover b) inventory holding period c) current d) quick
