An extract from the financial statements of a wholesaler for the years ended 31 December 2004 and 2003 follows (amounts in thousands of euro):
|
Balance sheet data
|
As at 31 December
|
|
|
2004
|
2003
|
|
Trade and other receivables
|
500,000
|
470,000
|
|
Deduct: Allowance for doubtful debts
|
(25,000)
|
(20,000)
|
|
Net trade and other receivables
|
475,000
|
450,000
|
|
|
|
|
|
Inventories
|
600,000
|
550,000
|
|
|
|
|
|
Income statement Data
|
Year ended 31 December
|
|
|
2004
|
2003
|
|
Net credit sales
|
2,500,000
|
2,200,000
|
|
Net Cash sales
|
500,000
|
400,000
|
|
Net sales
|
3,000,000
|
2,600,000
|
|
Cost of sales
|
2,000,000
|
1,800,000
|
|
Selling, general and administrative expenses
|
300,000
|
270,000
|
|
Other operating expenses
|
50,000
|
30,000
|
|
Net operating expenses
|
2,350,000
|
2,100,000
|
(a) What is the trade receivables turnover for 2004 and 2003?
(b) What is the inventory turnover for 2004 and 2003?
(c) Comment on the trend.