Calculate the liquidity and working capital ratios for P for the year
ended 31 December 20X9.
$m
Sales revenue 1.657.5
Gross profit 489.3
Inventory 147.9
Trade receivables 393.4
Trade payables 275.1
Cash 53.8
Short-term investments 6.2
Other current liabilities 284.3
Ques- How is Receivables collective period calculated in it ?
Because turnover is not mentioned and since most of the time we take sales revenue and turnover interchangeably but as per the answer turnover was 1867, how did they get it ?and why cant we take sales revenue as it is ?
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Ratio
5y ago#1Sales revenue and turnover are the same thing.
I have no idea where they got 1867 from. Unless there is something else in the question that you have not typed, it looks as though there is a mistake in your book.
If it is a question from the current edition of the BPP Revision Kit, or a past exam question, then tell me which one so that I can check.
I am studying from Kalpan's study text book which is valid till June 2020 for December exam .
Page no. 402
And I have rechecked it I have type the whole question.. then probably its just the some mistake
5y ago#4It sounds like a mistake. I do not have the Kaplan book - only the BPP Revision Kit.
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