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A Level Accounting (9706)•9706/12/M/J/25
Question 21 from 9706/12/M/J/25

Explanation

Insufficient data for current ratio calculation Steps:

  • Identify current assets and liabilities from given balances: net trade receivables = 80,000−80,000 - 80,000−2,000 = 78,000(partialCA);bankoverdraft=78,000 (partial CA); bank overdraft = 78,000(partialCA);bankoverdraft=5,000 (partial CL); trade payables = unknown part of CL.
  • Apply current ratio formula: CA / CL = 2.5, so CA = 2.5 × CL.
  • CL = trade payables + $5,000 + any other CL (unknown).
  • CA = $78,000 + any other CA (unknown); cannot solve for trade payables without full totals.

Not enough information.

Final answer: Not enough information.

Topic: Analysis and communication of accounting information

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