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…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Q1 Libscomb Technologies' annual sales are $5,153,262 and all sales are made on credit, it purchases $3,894,023 of materials each year (and this is its cost of goods sold). Libscomb also has $500,636 of inventory, $477,741 of accounts receivable, and $490,466 of accounts payable. Assume a 365 day year. What is Libscomb’s Inventory Turnover?

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