financial management II

show working please.

Wright Industrics Limited traditionally follows a highly aggressive working capital policy with no long-term borrowings. Below are key dotails recanturn- Tled: The firm is also proposing to offer a 4/10, net 130 discount policy to reduce accounts receivables. Wrights anticipates 30% of its customers will take advantage of the discount. As a result of this discount policy, the collection period will be reduced to 1/2 months. The company also provides the following data: Dctermine: i. the firm's working capital cycle, that is, cash converion cycle. ( marks) ii. whether the firm should offer the new diseount policy to customers. ( 6 makks)