Understanding Accounting
Menu
Worked example · EX:multi-period-statement-analysis-and-operating-efficiency/reconcile-aster-credit-sales-purchases

Reconcile Aster's operating numerator inputs

Derive collections and supplier payments while keeping net credit sales, cost of goods sold, purchases, and cash settlements separate.

Updated Aug 7, 2026 Review due Nov 7, 2026
On this page
  1. Customer side
  2. Inventory side
  3. Supplier side
  4. Analytical consequence
Worked-example setupScope and assumptions
  • No write-offs, returns, discounts, allowances, acquisitions, write-downs, or other rollforward adjustments occur.
  • Credit purchases are separately disclosed and do not include cash purchases.
Period
Aster Year 3
Units
Whole USD for Year 3
Rounding
No rounding for rollforward controls

Customer side

$42,000 opening receivables + $325,000 net credit sales
− customer collections = $55,000 ending receivables

customer collections = $312,000

Total net sales are $380,000. The $55,000 difference between net sales and net credit sales represents the stipulated non-credit portion for this exercise. It did not create the trade receivables in the turnover denominator.

Inventory side

$66,000 opening Inventory + $249,000 merchandise purchases
− $235,000 cost of goods sold = $80,000 ending Inventory

Cost of goods sold transfers cost out on sale. Purchases add cost. Their $14,000 difference explains the Inventory increase under the bounded facts.

Supplier side

$35,000 opening payables + $210,000 credit purchases
− supplier payments = $44,000 ending payables

supplier payments = $201,000

Merchandise purchases are $249,000, so $39,000 were not included in ordinary credit purchases. Cost of goods sold, total purchases, credit purchases, and supplier payments are four distinct fields.

Analytical consequence

Receivables turnover uses $325,000 net credit sales. Inventory turnover uses $235,000 cost of goods sold. Payables turnover uses $210,000 credit purchases. The exact labels prevent an apparently tidy dashboard from comparing unrelated flows.

Verified calculation · multi period statement analysis

The curriculum loader recomputed this example before it entered the site build. Expand any structured input to inspect the stated facts.

common size balance base
total assets
common size income base
net sales
days basis
actual-period-days
entities
1 field
Inspect data
{
  "aster": {
    "period_order": [
      "year_1",
      "year_2",
      "year_3"
    ],
    "periods": {
      "year_1": {
        "days_in_period": 365,
        "ending": {
          "accounts_payable": 28000,
          "accounts_receivable": 33000,
          "cash": 22000,
          "inventory": 54000,
          "noncurrent_assets": 100000,
          "noncurrent_liabilities": 65000,
          "other_current_assets": 11000,
          "other_current_liabilities": 16000,
          "total_equity": 111000
        },
        "flow": {
          "cost_of_goods_sold": 180000,
          "credit_purchases": 150000,
          "merchandise_purchases": 184000,
          "net_credit_sales": 240000,
          "net_income": 28000,
          "net_sales": 300000,
          "operating_expenses": 80000
        },
        "opening": {
          "accounts_payable": 25000,
          "accounts_receivable": 30000,
          "cash": 20000,
          "inventory": 50000,
          "noncurrent_assets": 90000,
          "noncurrent_liabilities": 60000,
          "other_current_assets": 10000,
          "other_current_liabilities": 15000,
          "total_equity": 100000
        }
      },
      "year_2": {
        "days_in_period": 365,
        "ending": {
          "accounts_payable": 35000,
          "accounts_receivable": 42000,
          "cash": 24000,
          "inventory": 66000,
          "noncurrent_assets": 106000,
          "noncurrent_liabilities": 70000,
          "other_current_assets": 12000,
          "other_current_liabilities": 18000,
          "total_equity": 127000
        },
        "flow": {
          "cost_of_goods_sold": 210000,
          "credit_purchases": 185000,
          "merchandise_purchases": 222000,
          "net_credit_sales": 285000,
          "net_income": 27000,
          "net_sales": 345000,
          "operating_expenses": 95000
        },
        "opening": {
          "accounts_payable": 28000,
          "accounts_receivable": 33000,
          "cash": 22000,
          "inventory": 54000,
          "noncurrent_assets": 100000,
          "noncurrent_liabilities": 65000,
          "other_current_assets": 11000,
          "other_current_liabilities": 16000,
          "total_equity": 111000
        }
      },
      "year_3": {
        "days_in_period": 365,
        "ending": {
          "accounts_payable": 44000,
          "accounts_receivable": 55000,
          "cash": 25000,
          "inventory": 80000,
          "noncurrent_assets": 111000,
          "noncurrent_liabilities": 75000,
          "other_current_assets": 14000,
          "other_current_liabilities": 20000,
          "total_equity": 146000
        },
        "flow": {
          "cost_of_goods_sold": 235000,
          "credit_purchases": 210000,
          "merchandise_purchases": 249000,
          "net_credit_sales": 325000,
          "net_income": 25000,
          "net_sales": 380000,
          "operating_expenses": 110000
        },
        "opening": {
          "accounts_payable": 35000,
          "accounts_receivable": 42000,
          "cash": 24000,
          "inventory": 66000,
          "noncurrent_assets": 106000,
          "noncurrent_liabilities": 70000,
          "other_current_assets": 12000,
          "other_current_liabilities": 18000,
          "total_equity": 127000
        }
      }
    }
  }
}
horizontal comparison
immediately-preceding-period
trend base
first-period
zero base percentage policy
omit

Recomputed result

Values recomputed by the curriculum loader
MeasureValue
customer collections312,000
gross profit145,000
inventory rollforward difference0
operating income35,000
supplier payments201,000