7. From the following data, compute the duration of Operating Cycle for each of the 2 years and comment on the increase/decrease:

Particulars Year 1 Year 2 Stock:

Raw Materials 20,000 27,000 WIP 14,000 18,000 Finished Goods 21,000 24,000 Purchases 96,000 1,35,000 Cost of goods sold 1,40,000 1,80,000 Sales 1,60,000 2,00,000 Debtors 32,000 50,000 Creditors 16,000 18,000 Assume 350 days per year for computational purposes.