Go to Connect online for the financial statements of Cadbury, plc.

Required:

1. The company distributes its products through wholesalers. What items would you expect to be subtracted from sales revenue in the computation of net sales?

2. What expenses does Cadbury subtract from net sales in the computation of profit before income taxes? How does this differ from Nestlé's practice?

3. Compute Cadbury's trade receivables turnover ratio for the year ended December 31, 2008. What characteristics of its business might cause it to be so high?

4. What was the change in trade receivables and how did it affect the cash provided by operating activities for 2008 ?