Company A is a wholesaler selling grocery goods to retail stores on credit. Company B is a manufacturing company selling its products to other manufacturers for use in their products.

*Assume cost of sales is equal to purchases, based on constant levels of inventory.
Required (1) Calculate the working capital cycle for companies A and B.
(2) Comment on each answer.

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During year Sales Cost of sales* Gross profit At end of year Inventory (stock) Trade debtors Trade creditors A m 200 150 50 12 3 11 B m 200 150 50 24 13 11