ACCOUNTING QUE:

The following information is extracted from the financial statements of XP Sports Limited: Cash $677,423 Accounts Payable $1,721,669 Accounts Receivable $1,845,113 Notes Payable $2,113,345 Inventories $1,312,478 Total Current Assets $3,835,014 Total Current Liabilities $3,835,014 Net Sales $9,912,332 Cost $5,947,399 (a) Briefly explain what you understand by the term 'operating cycle'. (2 marks) Click or tap here to enter text. (b) What is the operating cycle for XP Sports Limited? (2 marks) Click or tap here to enter text. (c) What can you say about XP Sports accounts receivable and inventory management if it is known that the industry average operating cycle is 72 days? (1 mark) Click or tap here to enter text. (d) Briefly explain what you understand by the 'cash conversion cycle'. (2 marks) Click or tap here to enter text. 1(e) What is the cash conversion cycle for XP Sports Limited? (2 marks) Click or tap here to enter text. (f) What can you say about XP Sports cash conversion cycle if it is known that the industry average cash conversion cycle is 42 days? (1 mark)