Wood Dragon Ltd has provided a list of its assets and liabilities as at 31 December 2017 as follows:
- Long-Term Assets £1.8M
- Inventory £1.7M
- Accounts Receivables £1.5M
- Bank Account £1.4M
- Cash £0.1M
- Accounts Payable £1.9M
- Long-term Bank Loan £4M
- Reserves £0.5M
- Share Capital £1.0M
- Revenue £20.8M
- Cost-of-Sales £17.0M
- Net Profit Margin £1.5M
- Purchases £10.1M
What is Wood Dragon’s Trade Payable Days ratio?
Select ONE answer:
- 10.00
- 26.32
- 68.66
- 36.5
- 1.58
Show your workings to arrive at your answer, and explain and justify your reasons:
……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………
This is multiple choice question is suitable for Accounting KS5 classes.
The answer is 3 – £1.9M / £10.1M * 365 days = 68.66 days
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