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b) A company has annual sales revenues of GH30 million and the following working capital periods: Inventory conversion period Accounts receivable collection period Accounts payable
b) A company has annual sales revenues of GH30 million and the following working capital periods: Inventory conversion period Accounts receivable collection period Accounts payable payment period 2.5 months 2.0 months 1.5 months Production costs represent 70% of sales reven Required: Calculate the total amount held in working capital excluding cash and cash equivalents (4 marks) (Total: 20 marks)
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