AAT Cash & Treasury Management Exam  Calculating Trade Receivable and Trade Payable Amounts
Christian Hill
Just JoinedRegistered Posts: 3
Hi
Please can somebody kindly tell me the formula for calculating the Trade Receivable and Trade Payable amounts rather than the days for these?
I failed my first attempt on CTRM by 4% in August which was so frustrating as I really thought I had done enough, however I have my resit for it tomorrow so hopefully second time lucky!
One of the questions I know I got wrong in the exam was where the number of Trade Receivable and Trade Payable days were provided and you were asked to calculate the amounts for these but I honestly did not have a clue of the formula to answer this correctly!
Any advice for this would be greatly appreciated and would be a great help in time for my exam resit tomorrow!
Cheers
Christian
Please can somebody kindly tell me the formula for calculating the Trade Receivable and Trade Payable amounts rather than the days for these?
I failed my first attempt on CTRM by 4% in August which was so frustrating as I really thought I had done enough, however I have my resit for it tomorrow so hopefully second time lucky!
One of the questions I know I got wrong in the exam was where the number of Trade Receivable and Trade Payable days were provided and you were asked to calculate the amounts for these but I honestly did not have a clue of the formula to answer this correctly!
Any advice for this would be greatly appreciated and would be a great help in time for my exam resit tomorrow!
Cheers
Christian
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Comments

Hi,
Essentially you need to rearrange the equation, so if the formula for Trade Receivable days is TR * 365 /Revenue. Then to work out the actual revenue you need to do, Revenue * the TR days then divide by 365. Here is an example
TR days are 134, revenue is £1,400,000. Find out the TR balance. So do as follows, Revenue * 134/365 =£513,972.60
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