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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
- 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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