11.2 Hercules Wholesalers Ltd has been particularly concerned with its liquidity position in recent months. The most...

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11.2 Hercules Wholesalers Ltd has been particularly concerned with its liquidity position in recent months. The most recent income statement and statement of financial position of the business are as follows:

image text in transcribedimage text in transcribedThe trade receivables and payables were maintained at a constant level throughout the year.
Required:

(a) Explain why Hercules Wholesalers Ltd is concerned about its liquidity position.

(b) Calculate the operating cash cycle for Hercules Wholesalers Ltd.

(c) State what steps may be taken to improve the operating cash cycle of the business.

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Management Accounting For Decision Makers

ISBN: 9781292072432

8th Edition

Authors: Dr Peter Atrill, Eddie McLaney

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