8% SIMPLIFIED SERIES 1.70 Dav a. Cost of financing net working capital You are required to: Calculate each of the period i. Inventory period (in day) ii. Trade receivables period (in day) iii. Trade payables period (in day) iv. Current assets Im V. Current liabilities vi. Overdraft vii. Net working capital b. Calculate the total cost of financing current assets c. Describe the ways in which the company can reduce its over draft by working capital management. 8% SIMPLIFIED SERIES 1.70 Dav a. Cost of financing net working capital You are required to: Calculate each of the period i. Inventory period (in day) ii. Trade receivables period (in day) iii. Trade payables period (in day) iv. Current assets Im V. Current liabilities vi. Overdraft vii. Net working capital b. Calculate the total cost of financing current assets c. Describe the ways in which the company can reduce its over draft by working capital management. QUEST GHC The following information relates to Gyato Limited for the previous period: Credit sales Cost of sales Current assets (inventory and trade receivables only) Current liabilities (trade payable and an overdraft only) Inventory period Trade receivable period Trade receivable period Interest on overdraft Current ratio 280,000 126,000 Not known Not known 1.5 months 1.5 months 1 month 5% per month 1.4 times d) Explain QUESTION 4 Current assets (inventory and trade receivables only) The following information relates to Gyato Limited for the previous period: Credit sales Cost of sales GHC 280,000 126,000 Not known Current liabilities (trade payable and an overdraft only) Not known Inventory period 1.5 months Trade receivable period 1.5 months Trade receivable period Interest on overdraft Current ratio 1 month 5% per mo 1.4 times d) QUESTION 4 The following information relates to Gyato Limited for the previous period: Credit sales GHC De In C In I 280,000 I 126,000 Cost of sales Current assets (inventory and trade receivables only) Not known Current liabilities (trade payable and an overdraft only) Not known Inventory period 1.5 months Trade receivable period 1.5 months Trade receivable period Interest on overdraft Current ratio 1 month 5% per month 1.4 times d) QUESTION 4 The following information relates to Gyato Limited for the previous period: Credit sales GHC De In C In I 280,000 I 126,000 Cost of sales Current assets (inventory and trade receivables only) Not known Current liabilities (trade payable and an overdraft only) Not known Inventory period 1.5 months Trade receivable period 1.5 months Trade receivable period Interest on overdraft Current ratio 1 month 5% per month 1.4 times