Study the information below and calculate working capital cycle

Statement of Comprehensive income year ended 31 Dec 2022.

Sales = 17 500 000

Cost of sales =(14 000 000)

Opening inventory= 4 500 000

Purchases= ?

Closing inventory=(4 000 000)

Gross profit = 3 500 000

Statement of financial position as at 31 Dec 2022.

Assets. R

Trading inventory ?

Accounts receivable. 2 000 000

Cash. 250 000

Liabilities

Long term loan: GAP Bank (20%). 2 000 000

Accounts payable. 1 000 000

Note

The lone from GAP Bank was obtained on 01 January 2022. no payment were made during the financial year. Interest is not capitalised.