Below are the operating terms and conditions of a trading company:

goods held for resale rotate four times a year;

cost of goods sold is equal to 60% of sales (excl. tax);

customers pay at 45 days from month-end;

suppliers are paid at 30 days;

salaries, which amount to 10% of pre-tax sales, are paid at the end of every month;

payroll taxes, which amount to 50% of salaries, are paid on the 15th of the following month;

operating charges, other than purchases of goods for resale and staff costs, are paid in cash;

VAT is payable at 20% on sales and purchases. VAT payable for month n equals the difference between VAT collected on sales in month n and VAT recoverable on sales in month n, and is paid at the latest on the 25th of the month (n + 1).

Using the above data, calculate the working capital of the company in days of sales (excl. VAT).

AppendixLO1