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A company has annual sales revenues of GH30 million and the following working capital periods: Inventory conversion period 2.5 months Accounts receivable collection period 2.0

  1. A company has annual sales revenues of GH30 million and the following working capital periods:

Inventory conversion period

2.5 months

Accounts receivable collection period

2.0 months

Accounts payable payment period

1.5 months

Production costs represent 70% of sales revenue

Required:

Calculate the total amount held in working capital excluding cash and cash equivalents.

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