FSTP exam question
I sat (and passed!) my FSTP exam yesterday . But there was one question on one of the tasks that I had no clue on and ended up guessing. It was a question on incomplete records. Amongst other information, you were told the sole trader had started business at the beginning of the year, the business made 60000 of sales in the year, and there was a steady flow of business through the year. All sales were on credit and on average customers took 45 days to pay. The question asked, out of three possible answers, what would be the most likely receivables balance at the end of the year. I can't remember the exact amounts but one was around 5000, one around 7500 and one around 14000. I got as far as assuming 5000 sales per month then my head started hurting and I guessed the 7500 ish answer on the vague rational you'd be a month and half behind. Any thoughts how you'd attempt this kind of question? I must have done something right to pass but the curiosity is getting to me !