Toowong Ltd has been growing relatively slowly in a mature industry. Its trade creditor and credit sales

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Toowong Ltd has been growing relatively slowly in a mature industry. Its trade creditor and credit sales data for the last five years (in $ million) are shown below.

Required
(a) Compute the creditors turnover for Toowong Ltd’s trade creditors for the last four years.
(b) What does this ratio trend tell you about the company?

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Accounting Business Reporting For Decision Making

ISBN: 9780730369325

7th Edition

Authors: Jacqueline Birt, Keryn Chalmers, Suzanne Maloney, Albie Brooks, Judy Oliver, David Bond

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Question Posted: Dec 23, 2022 03:07 AM

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Toowong Ltd has been growing relatively slowly in a mature industry. Its trade creditor and credit sales

Question:

Item Trade creditors Credit purchases 2017 190 2103 2018 205 2290 2019 251 2413 2020 297 2505 2021 345 2 670

Step by Step Answer:

a Creditors turnover Average creditors x 365 Credit Purchase 2015 Creditors turnove...View the full answer

Accounting Business Reporting For Decision Making

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