Creditors' Turnover: Advanced 2 - answer
You need to multiply both sides of the equation by
| X2001 |
| 365 |
Then cancelling and rearranging gives:
| X2001 = 144,908 * | 365 | = 997,951.3 |
| 53 |
... that is, if the creditor days are 53 and the creditors' balance is £144,908, then the amounts invoiced by the business in the period must be £997,951.3
The second one ... did you get this?
| 45 days = | Creditors | = | 75,948 | = |
| Cost of sales | X2001 | |||
| 365 | 365 |
| X2001 = 75,948 * | 365 | = 616,022.7 |
| 53 |
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