(b) Calculate the working capital cycle for both years. Year ended 31st December 2019 2018 Inventory - raw materials 108/751 x 365 53 days 145/971 x 365 55 days Inventory - work in progress 75/751 x 365 37 days 90/971 x 365 34 days Inventory - finished goods 86/751 x 365 42 days 125/971 х 365 47 days Receivables 171.2/868 x 365 72 days 255/999 х 365 93 days Payables 85/511 x 365 102.3/700 x 365 (61 days) (53 days) Total working capital cycle 143 days 176 days
(b) Calculate the working capital cycle for both years. Year ended 31st December 2019 2018 Inventory - raw materials 108/751 x 365 53 days 145/971 x 365 55 days Inventory - work in progress 75/751 x 365 37 days 90/971 x 365 34 days Inventory - finished goods 86/751 x 365 42 days 125/971 х 365 47 days Receivables 171.2/868 x 365 72 days 255/999 х 365 93 days Payables 85/511 x 365 102.3/700 x 365 (61 days) (53 days) Total working capital cycle 143 days 176 days
Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter13: Capital Budgeting: Estimating Cash Flows And Analyzing Risk
Section: Chapter Questions
Problem 5MC
Related questions
Question
![QUESTION
(b)
Calculate the working capital cycle for both years.
Year ended 31st December
2019
2018
Inventory - raw materials
108/751 х 365
53 days
145/971 х 365
55 days
Inventory - work in progress
75/751 x 365
37 days
90/971 x 365
34 days
Inventory - finished goods
86/751 x 365
42 days
125/971 x 365
47 days
Receivables
171.2/868 x 365
72 days
255/999 х 365
93 days
Payables
85/511 x 365
(61 days)
102.3/700 x 365
(53 days)
Total working capital cycle
143 days
176 days](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F68ff79a1-0123-4bc3-b93d-2524f652ec4e%2Fe28fa14b-7720-4331-86ef-5962091ceacc%2F34umk_processed.png&w=3840&q=75)
Transcribed Image Text:QUESTION
(b)
Calculate the working capital cycle for both years.
Year ended 31st December
2019
2018
Inventory - raw materials
108/751 х 365
53 days
145/971 х 365
55 days
Inventory - work in progress
75/751 x 365
37 days
90/971 x 365
34 days
Inventory - finished goods
86/751 x 365
42 days
125/971 x 365
47 days
Receivables
171.2/868 x 365
72 days
255/999 х 365
93 days
Payables
85/511 x 365
(61 days)
102.3/700 x 365
(53 days)
Total working capital cycle
143 days
176 days
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