Case Study 2 Knodl Meier (KM) GmbH is a large Austrian exporter of high-quality car parts used by major car producers in the United Kingdom. The company deals with driving belts, timing belts, timing belt kits, and timing chains. It purchases these car parts from various manufacturers in the continent and packages them at its major factory in Innsbruck before they are exported to the United Kingdom. KM has successfully sold these parts in the United Kingdom through UK importers of car parts Car Dindle (CD) and Moto Expo (ME). These companies are based in the UK and have the Economic Operator Registration and Identification Number (EORI) required for the importation of car parts from the continent after Brexit. Both companies then resell the parts purchased from KM to various retailers across the United Kingdom. Knodl Meir sells all car parts on credit and makes no sales in Austria. The following information has been extracted from the financial statements of KM, ME and CD. KM's figures are stated in 000 while the figures reported for CD and ME are in 000. The average working capital cycle for similar companies to KM is 60 days. However, companies like ME and CD have an average working capital cycle of 30 days. Assume that the inventory figure presented represents each company's average inventory. Required: 1. Calculate relevant working capital ratios to determine the working capital cycle of both KM and CD. (Show clearly all workings.) (6 marks) 2. Based on your calculations in Requirement 1, evaluate the performance of these three companies in managing their respective working capital cycles, stating which company demonstrates poorer working capital cycle management. (12 marks - 450 maximum word limit) 3. Recommend actions that the company with poorer working capital management could take to improve its working capital cycle. (7 marks - 250 maximum word limit)