A business furnishes you with the following details:

A year may be taken to be of 360 days. You are asked to:
(i) Work out inventories turnover and debtors turnover ratios;

(ii) calculate the operating cycle and state its significance.

Transcribed Image Text:

(i) Opening Inventories (ii) Closing Inventories (iii) Sales: Credit Cash (iv) Gross Profit (v) Year end Debtors Less: Provision for Bad Debts (vi) Year end Bills Receivable 20,000 2,000 50,000 70,000 2,10,000 1,50,000 60,000 18,000 15,000