9.32 Wiswell Limited is a trading company. Its year-end financial statements for 2012 (with comparatives for 2011) included the following relevant details:

2012 2012 2011 2011

£ £ £ £

Revenue 1 936 000 1 877 200 Cost of sales Opening inventory 145 550 136 200 Add: purchases 1 042 255 1 025 666 1 187 805 1 161 866 Less: closing inventory (160 370) (145 550)

(1 027 435) (1 016 316)

Gross profit 908 565 860 884 Inventory 160 370 145 550 Trade receivables 226 485 209 063 Trade payables 160 479 151 742 Required: calculate the following ratios for both 2012 and 2011:

i) inventory turnover in days ii) trade receivables turnover in days iii) trade payables turnover in days.

Comment briefly on the significance of the changes in the ratios.

The following information about Worsley Bacup plc, a quoted company, is relevant to questions 9.33 – 9.36 inclusive.

Extracts from Worsley Bacup’s accounts for the year ending 30 September 2012 include the following useful information:

£000 Operating profit 986.7 Finance costs (106.0)

Profit before tax 880.7 Tax (240.0)

Profit after tax 640.7 The company has 2 200 000 shares in issue. The shares have a nominal value of 25p each. During the financial year ended 30 September 2012 a dividend of £250 800 was paid to the company’s shareholders. The market price at 30 September 2012 of a share in the company was £7.66.