We will look at how a firm manages its trade receivables and trade payables with the following extract from the financial statements of a company:
|
|
2010
|
2011
|
|
|
£
|
£
|
|
Sales
|
225,000
|
310,000
|
|
Purchases
|
140,000
|
195,000
|
|
Trade receivables
|
18,500
|
38,000
|
|
Trade payables
|
12,400
|
13,200
|