During the last year the company started its operations with an opening stock of OMR 22,000 and made a purchase of 50,000 OMR. The company has returned OMR 5000 worth material due to quality issues. During the last year, the business has paid OMR 6000 as wages. The company sold goods for a total amount of OMR 80,000 of which OMR 50,000 sales was on cash basis. Average debtors during the last year was 10,000 OMR, average creditors were 15,000 OMR and closing inventory was OMR 20,000. Choose the average payment period of Akkudu Ltd. from the following? a. 101.253 b. 110.253 c. 121.67 d. 140.059
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Akkudu Ltd. is a manufacturing company that produces electronic gadgets in bulk quantities for its customers in Oman. The company was able to sustain a reasonable amount of sales in the last two quarters despite the pandemic-crisis during the last year. However, the company has faced some serious liquidity problems due to delayed payment by the customers and lower sales in the first two quarters. Hence, the company is seriously thinking about revising its working capital standards by considering the changes in the market. The finance manager of the company is seeking your help in assessing the average payment period from the following financial data.
During the last year the company started its operations with an opening stock of OMR 22,000 and made a purchase of 50,000 OMR. The company has returned OMR 5000 worth material due to quality issues. During the last year, the business has paid OMR 6000 as wages. The company sold goods for a total amount of OMR 80,000 of which OMR 50,000 sales was on cash basis. Average debtors during the last year was 10,000 OMR, average creditors were 15,000 OMR and closing inventory was OMR 20,000.
Choose the average payment period of Akkudu Ltd. from the following?
101.253
110.253
121.67
140.059
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