You have the following data in relation to a large supermarket business: 31/12/202031/12/2019 £million £million Inventories 900 775 Trade 687.5 617.5 receivables Cash 525 562.5 Total current 2,112.5 1,955 assets Trade payables 2,800 2,625 Total current 2,800 2,625 liabilities 31/12/202031/12/2019 £million £million Revenue 16,350 15,050 Cost of Sales 14,793.25 13,800 Operating Profit 962.5 945 Your task: (a) Calculate the operating cash cycle in days for the year ending 31st December 2020. (b) Comment on your findings and explain whether this is typical for this type of business and why this is the case.

You have the following data in relation to a large supermarket business: 31/12/202031/12/2019 £million £million Inventories 900 775 Trade 687.5 617.5 receivables Cash 525 562.5 Total current 2,112.5 1,955 assets Trade payables 2,800 2,625 Total current 2,800 2,625 liabilities 31/12/202031/12/2019 £million £million Revenue 16,350 15,050 Cost of Sales 14,793.25 13,800 Operating Profit 962.5 945 Your task: (a) Calculate the operating cash cycle in days for the year ending 31st December 2020. (b) Comment on your findings and explain whether this is typical for this type of business and why this is the case.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter6: Merchandising Transactions

Section: Chapter Questions

Problem 10MC: A retailer pays on credit for $650 worth of inventory, terms 3/10, n/40. If the merchandiser pays...

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