a)
To determine: The net working capital for the year 2012.
Introduction:
The net working capital is the difference between the net current assets and net current liabilities of the firm.
b)
To determine: The cash conversion cycle of Company G for the year 2012.
Introduction:
Cash cycle is also termed as cash conversion cycle, which measures the time taken to convert the cash into stocks, accounts payable by way of sales and accounts receivables and again back to cash.
c)
To determine: The cash conversion cycle and whether the inventory average for accounts receivables day will match the cash conversion cycle had in the year 2012.
Introduction:
Cash cycle is also termed as cash conversion cycle, which measures the time taken to convert the cash into stocks, accounts payable by way of sales and accounts receivables and again back to cash.
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