As a part of the Get Ceres T M program, Ceres Gardening Company started extending an increased
Question:
As a part of the Get Ceres T M program, Ceres Gardening Company started extending an increased credit period to its dealers. Look at the operating working capital of the company and analyze the impact of this decision on its operating working capital step by step through the following questions.
Question 2A: Calculate the operating working capital of Ceres Gardening Company for 2002–2006(E).
Question 2B: Calculate the operating working capital/sales ratio of Ceres Gardening Company for 2002 to 2006(E).
Question 2C: Calculate the DIO, DSO and DPO for the company from 2002 to 2006(E).
Question 2D: What is the implication of the long credit period given to dealers by Ceres Gardening Limited on its working capital? Explain your answer by specifying at least one reason.