The statement of profit or loss
. Evie receives cash from sales in her first year of trading to 31 December 2021 of £105,000. At the end of the financial year, 31 December 2021, Evie has cash receivable from sales to credit customers of £25,000. Evie should therefore recognize £130,000 sales in her accounts to 31 December 2021.

. Tate Limited has been trading for many years. At 31 December 2020, the company had trade receivables of £20,000. During the year ended 31 December 2021, Tate Limited received £200,000 from customers in respect of goods supplied to them. At 31 December 2021, Tate's trade receivables amounted to £30,000. Tate Limited should recognize sales of £230,000 in its financial statements for the year ended 31 December 2021.

. Lyle Limited has been trading for many years. At 30 June 2021, Lyle Limited owed its suppliers £75,000 for goods received but not yet paid for. During the year 1 July 2020 to 30 June 2021, Lyle Limited paid its suppliers £550,000 for goods received. At 30 June 2021 Lyle Limited owed £35,000 for goods received but not yet paid for. Based on these figures, Lyle should recognize £510,000 as purchases in the financial statements for the year ended 30 June 2021.

. Cash received from trade receivables creates new sales.