Cash Management AAT Assessment 1 Q:5
toluwanimianita
Registered Posts: 2
I really need help as I've spent too long on this question.
The settlement discount will reduce total profit by £153,340 which is equivalent to 5.5% of total sales.
How is the figure £153,340 worked out??
Please help
The settlement discount will reduce total profit by £153,340 which is equivalent to 5.5% of total sales.
How is the figure £153,340 worked out??
Please help
0
Comments

Total settlement discount given for each of the 6 periods (27060+28380+29150+24750+23100+20900) = 153,340
Total sales = 2,788,000 therefore 153,340 / 2,788,000 x 100% = 5.5%5 
Thank you0

I am having trouble working out how these figures are calculated. Anybody help? Thanks in advance0

Hi Martih,Martih123 said:I am having trouble working out how these figures are calculated. Anybody help? Thanks in advance
If you are wondering how N4T calculated the figures for the 6 periods, this is done as follows:
P1: (492,000 x 0.55) x 10% = 27,060
P2: (516,000 x 0.55) x 10% = 28,380
this is continued for all six periods...
Once you add all six periods of settlement discount, this gives you your 153,340 to answer task 5b)
You then present this as a % of the total sales.
Really hope this helps, it took me a while also.1 
Thank you Smiller940
Categories
 All Categories
 1.2K Books to buy and sell
 2.3K General discussion
 12.5K For AAT students
 318 NEW! Qualifications 2022
 161 General Qualifications 2022 discussion
 11 AAT Level 2 Certificate in Accounting
 56 AAT Level 3 Diploma in Accounting
 87 AAT Level 4 Diploma in Professional Accounting
 8.8K For accounting professionals
 23 coronavirus (Covid19)
 272 VAT
 92 Software
 273 Tax
 135 Bookkeeping
 7.2K General accounting discussion
 200 AAT member discussion
 3.8K For everyone
 38 AAT news and announcements
 345 Feedback for AAT
 2.8K Chat and offtopic discussion
 582 Job postings
 16 Who can benefit from AAT?
 36 Where can AAT take me?
 42 Getting started with AAT
 26 Finding an AAT training provider
 48 Distance learning and other ways to study AAT
 25 Apprenticeships
 66 AAT membership