Determine the actual revenue

Reference no: EM131194030

Question:

You are analysing a large international education company that provides distance learning solutions, The New Age Ltd. You are concerned about the quality of the reported revenue and have gathered the following information from the 2016 financial statements:

R'000	2016		2014
R'000	2016	2015	2014
Revenue - as reported	230 000	210 500	220 000
Accounts Receivable	50 411	31 719	33 151
Provision for bad debts	504 634		663
Provision for bad debts	504 634
Inventory	46 000	35 083	36 667
Deferred revenue	12 105	23 389	24 444
Accounts payable	14 178	12 976	13 562
Accounts payable	14 178		13 562

Required:

1 Determine the actual revenue collected during the 2015 and 2016 years. Show all your workings.

2 Calculate the following for the 2015 and 2016 years:

- Debtors' collection period

- Percentage of bad debt provision relative to debtors

- Deferred revenue as a percentage of reported revenue.

Reference no: EM131194030

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