Assume 350 Days per year for computational purposes

5. From the following data, compute the duration of operating cycle for each of the two years and comment on the increase/decrease: (SW No. 1) Year 1 Year 2 Stock: Raw materials 20,000 27,000 Work-in-progress 14,000 18,000 Finished goods 21,000 24,000 Purchases 96,000 1,35,000 Cost of goods sold 1,40,000 1,80,000 Sales 1,60,000 2,00,000 Debtors 32,000 50,000 Creditors 16,000 18,000