Question
DIP Motors has P45 000 debtors, Inventory of P25 000, payable deferral period of 12 days and cash conversion cycle of 30 days. Assume 360
DIP Motors has P45 000 debtors, Inventory of P25 000, payable deferral period of 12 days and cash conversion cycle of 30 days. Assume 360 days in a year.
Use the above information to calculate:
Annual sales of this company (3 marks)
The number of days it takes to convert credit sales into cash (1 marks)
The Operating circle ( 2 marks)
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Practical Financial Management
Authors: William R. Lasher
6th Edition
1439080496, 978-1439080498
