(a) Explain the meaning of the term working capital cycle for a trading company (b) Calculate the working capital cycle in days from the information provided (c) State one advantage to a business of keeping its working capital cycle as short as possible Sales (all on credit) Less Opening inventory ...

a Working Capital Cycle for a Trading Company The working capital cycle also known as the cash conversion cycle is a measure of the time it takes for ...

(a) Explain the meaning of the term working capital cycle for a trading company. (b) Calculate the...

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(a) Explain the meaning of the term ‘working capital cycle’ for a trading company.

(b) Calculate the working capital cycle in days from the information provided.

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Financial Accounting An Introduction

ISBN: 9780273737650

2nd Edition

Authors: Mr Barry Elliott, Mr Augustine Benedict

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Question Posted: Aug 28, 2023 09:26 AM

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(a) Explain the meaning of the term working capital cycle for a trading company. (b) Calculate the...

Question:

Sales (all on credit) Less: Opening inventory Purchases Closing inventory Gross profit Receivables at year end Payables at year end £'000 £'000 1,000 100 800 (200) (700) 300 250 150

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Financial Accounting An Introduction

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