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AAT Cash & Treasury Management Exam - Calculating Trade Receivable and Trade Payable Amounts

Christian HillChristian Hill Just JoinedRegistered Posts: 3
in Cash and Treasury Management
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

Comments

  • LewisScarrLewisScarr AAT Student, AATQB Posts: 12
    Hi,
    Essentially you need to re-arrange 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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