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I don’t know what is the exact formula name for this formula..For calculating like how many days the company can meet and pay the payment off
Whats the formula Mr Grom?
I’m not sure what you mean.
Receivables days = Receivables/sales per day
Payables days = Payables/purchases per day
In past year paper December 2014, the airport payment days answer are 62 days..how do we get that? I still don’t know how to use the formula that you illustrate above
Example:
If receivables = 500,000 and sales = 5,000,000, then sales per day = 5,000,000/365 = 13,699 and receivables days = 500,000/13,669 = 37 days, [or as its sometimes written:
500,000 x 365/5,000,000]Similarly for payables days, but using payables and cost of sales.
You should now be able to work out the payables days in the 2014 question you asked about.
This is all covered in Chapter 32 of the P3 notes.
Thanks for clarifying my doubt!
I haven’t accessed the lecture notes provided in OpenTuition as i only discovered this website recently
And one more question: Currently my study style is..Read all the past year paper…trying to absorb the “experience” and idea on how im going to solve/respond to the problem..I seldom refer or study back my textbook because i felt that they seldom test us in theories
Is my study style appropriate ?
They are unlikely to ask you to describe a theory, but you are expected to apply suitable theories when solving problems. P3 is not called ‘P3 – common sense’. There is a body of academic knowledge which you are expected to be aware of and use as this will give better and stronger analysis and answers.
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