Financial fluency for managment decision making

To work out a ‘Payables days’ figure for Hallam Ltd you need a ‘Purchases’ figure … but this isn’t quoted anywhere , so use the equation : Cost of Sales = Opening Stock + Purchases – Closing Stock.

For information:

 

Opening stock = previous year closing inventory per statement of financial position.

 

Closing stock = inventory as stated in this year’s statement of financial position.

 

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