Calculate the operating cash cycle for the last two years for the following business:

Distinguishes between the previous and current year figures.

Calculate and state with formula the sales, cost, inventory; expenses & profit for a particular year.

Calculate and state with formula the assets, trade payables, trade receivables equity and liabilities.

Identifies formulas accurately and applies them in calculations.

Provides perfect calculations.

	Last year (R.O)		This year (R.O)
Sales revenue		3,500,000		3,800,000
Cost of sales
Opening inventory	200,000		240,000
Purchases	950,000		1,080,000
Closing inventory	(240,000)	(910,000)	(320,000)	(1,000,000)
Gross profit		2,590,000		2,800,000
Expenses		(1,200,000)		(1,500,000)
Profit for the year		1,390,000		1,300,000

Assets	Last year (R.O)		This year (R.O)
Non current assets		1,345,000		1,750,000
Current assets
Inventory		240,000		320,000
Trade receivables		560,000		620,000
Cash at bank		215,000		95,000
Total assets		2,360,000		2,785,000
Equity
Share capital		1,000,000		1,000,000
Retained Earnings		1,160,000		1,560,000
Non current liabilities		50,000		80,000
Current liabilities
Trade payables		150,000		145,000
Total equity & liabilities		2,360,000		2,785,000