QUESTION(b)Calculate the working capital cycle for both years.Year ended 31st December20192018Inventory - raw materials108/751 х 36553 days145/971 х 36555 daysInventory - work in progress75/751 x 36537 days90/971 x 36534 daysInventory - finished goods86/751 x 36542 days125/971 x 36547 daysReceivables171.2/868 x 36572 days255/999 х 36593 daysPayables85/511 x 365(61 days)102.3/700 x 365(53 days)Total working capital cycle143 days176 days

Working capital cycle - It is defined as the time taken by a firm to convert its current…

Answered: (b) Calculate the working capital cycle…

Entrepreneurial Finance

6th Edition

ISBN:9781337635653

Author:Leach

Publisher:Leach

Chapter14: Security Structures And Determining Enterprise Values

Section: Chapter Questions

Problem 1bM

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: Answers the days of Working capital based on the information below: 2020 2021 Profit of the year $126,000 $175,000 Depreciation/Amortization 25,000 35,000 Trade receivables 260,000 285,000 Inventories 350,000 390,000 Trade and other payables 290,000 310,000 Revenue 1,800,000 2,100,000
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