Case 1 Working Capital (30%)

Masonry Ltd estimates that it takes the company 27 days on average to pay off its suppliers. It also knows that it has dyas sales in inventory of 64 days days sales outstanding of 32 days.

a) If the cash conversion cycle of the industry, on average, is 75 days, does Masonry manage their working capital good? Explain your answer by comparing the cash conversion cycle of Masonrys and compare it with the industry (10%)

b) Assume you are the CFO of Mansory, explain your strategy to improve Mansorys cash conversion cycle! (10%)

c) Explain the implemented strategy to improve cash conversion cycle in your current company you work with! (10%)