Lulu hyper market in Nizwa had faced a serious cash crunch during the last year due to the pandemic. In the year 2021 the business wants to improve its internal performance and needs to account for the exact money has to be floated as working capital in order to fuel the increased activities of the business. The finance department had provided with the following information to the management accounting team to work out the Average payment period. The business has started its operations in the last year with an opening stock of OMR 5,000 and purchased OMR 20,000 worth goods from its supplier. Later, the business has rejected OMR 2,000 worth goods after the quality check conducted by the stores department. The total sales of the company for the year 2020 was OMR 40,000 out of which OMR 15,000 was on cash basis. The finance department has also provided with the following details Particulars Debtors at the beginning Debtors at the end Creditors at the berinnin Creditors at the end Stock at the end Amount in OMR R.000 12.000 6.000 4.000 000 Identify the Average payment period from the following Options? 144.57 days 101.39 days O 133.57 days 140.17 days
Lulu hyper market in Nizwa had faced a serious cash crunch during the last year due to the pandemic. In the year 2021 the business wants to improve its internal performance and needs to account for the exact money has to be floated as working capital in order to fuel the increased activities of the business. The finance department had provided with the following information to the management accounting team to work out the Average payment period. The business has started its operations in the last year with an opening stock of OMR 5,000 and purchased OMR 20,000 worth goods from its supplier. Later, the business has rejected OMR 2,000 worth goods after the quality check conducted by the stores department. The total sales of the company for the year 2020 was OMR 40,000 out of which OMR 15,000 was on cash basis. The finance department has also provided with the following details Particulars Debtors at the beginning Debtors at the end Creditors at the berinnin Creditors at the end Stock at the end Amount in OMR R.000 12.000 6.000 4.000 000 Identify the Average payment period from the following Options? 144.57 days 101.39 days O 133.57 days 140.17 days
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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Transcribed Image Text:Lulu hyper market in Nizwa had faced a serious cash crunch during the last vear due to the pandemic. In the vear 2021 the business wants to improve its internal
performance and needs to account for the exact money has to be floated as working capital in order to fuel the increased activities of the business. The finance
department had provided with the following information to the management accounting team to work out the Average payment period.
The business has started its operations in the last year with an opening stock of OMR 5,000 and purchased OMR 20,000 worth goods from its supplier. Later, the
busines
OMR 40,000 out of which OMR 15,000 was on cash basis. The finance department has also provided with the following details
s has rejected OMR 2,000 worth goods after the quality check conducted by the stores department. The total sales of the company for the year 2020 was
Debtors at the beginning
8.000
12.000
Creditors at the beginning
Creditors at the end
Stock at the end
6,000
4.000
8,000
Identify the Average payment period from the following Options?
O 14457 days
O 101.39 days
O 113.57 days
O 140.17 days
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