working capital and current assets management PureCart Ltd. is a rapidly growing e-commerce company experiencing fluctuating demand and unpredictable supplier lead times. This uncertainty poses challenges for managing their working capital effectively. The following company financial information has been provided to you: Cost of goods sold (COGS): R120 000 Goods are sold at 20% on cost. All goods are sold on credit. All goods are purchased on credit. There is no opening and closing stock. Average inventory: R30 000 Accounts receivable: R40 000 Accounts payable: R25 000 Q3)Calculate the cash conversion cycle. Provide all formulas.
working capital and current assets management PureCart Ltd. is a rapidly growing e-commerce company experiencing fluctuating demand and unpredictable supplier lead times. This uncertainty poses challenges for managing their working capital effectively. The following company financial information has been provided to you: Cost of goods sold (COGS): R120 000 Goods are sold at 20% on cost. All goods are sold on credit. All goods are purchased on credit. There is no opening and closing stock. Average inventory: R30 000 Accounts receivable: R40 000 Accounts payable: R25 000 Q3)Calculate the cash conversion cycle. Provide all formulas.
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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working capital and current assets management
PureCart Ltd. is a rapidly growing e-commerce company experiencing fluctuating demand and unpredictable supplier lead times.
This uncertainty poses challenges for managing their working capital effectively.
The following company financial information has been provided to you:
- Cost of goods sold (COGS): R120 000
- Goods are sold at 20% on cost.
- All goods are sold on credit.
- All goods are purchased on credit.
- There is no opening and closing stock.
- Average inventory: R30 000
- Accounts receivable: R40 000
- Accounts payable: R25 000
Q3)Calculate the cash conversion cycle. Provide all formulas.
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