Assessment 2 - Task 1.7

Kylie_Mounce
Kylie_Mounce Registered Posts: 8
in AAT Level 4 (Level 8 in Scotland)
Please help with cash management task 1.7, how do I work out sales revenue?

Comments

  • Casu
    Casu Registered, Users Awaiting Email Confirmation Posts: 102
    I do keep saying this but not all of us have access to the questions eg those of us who passed years ago cannot see the study area/those people who are on different AQA modules (2013 v 2016) can only see what they are on. Please post the question. Also - I do encourage students to post an answer - doesnt matter if you get it a little bit wrong or wildly incorrect. Shows you have given it a go and helps to understand the parts you are struggling on.
  • Kylie_Mounce
    Kylie_Mounce Registered Posts: 8
    Hi, Apologies -

    I have the following information -
    GP - 647,875
    Trade Receivables - 450,000
    Trade Payables - 316,050
    Trade Receivables Collection period in days - 90
    Inventory Holding period in days - 60

    I have to work out the following -

    Sales Revenue
    Cost of Sales
    Inventory level in SFP
    Trade Payable period in days
  • Casu
    Casu Registered, Users Awaiting Email Confirmation Posts: 102
    I did ask for a picture of the question as often bits are missed out. Plus I did suggest you have a go - Iam not going to do your work for you! But I dont mind checking it and pointing you in the right direction!!!!!
  • Adele69
    Adele69 Registered Posts: 320
    I'm not doing Cash Management but it looks like a variance analysis question. Presumably you've done Financial Statements &/or Financial Performance?

    I think Revenue can be calculated from Trade Receivables Collection Period.
    TRCP = TR/Rev
  • Mike Webster
    Mike Webster Registered, Tutor Posts: 203 Dedicated contributor 🦉
    As Adele says, put the figures you have into the Trade receivables collection period equation. Once you've done that, you should be able to calculate the sales revenue figure which, in turn, will help you with the other figures you need. Think of this like an incomplete records question. Put in what you know to find the missing figure.

    Good luck.
    Michael JH Webster AATQB FMAAT
  • Kylie_Mounce
    Kylie_Mounce Registered Posts: 8
    Thank you Adele and Mike, appreciate it. I was initially dividing the trade receivables by 365 which was how was getting in a mess. Now I have the sales revenue figure, the rest is fine. Thanks again :)
  • rvs29
    rvs29 Registered Posts: 76
    I am still stuck with how to work out this answer, please can someone explain?
    AAT Level 3 - May 2016
    AAT Level 4 - December 2017

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