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Information about realization was not provided b) A company has Sh. 15 million of sales, Sh: 2 million of inventories, sh: 3 million of receivables

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Information about realization was not provided

b) A company has Sh. 15 million of sales, Sh: 2 million of inventories, sh: 3 million of receivables and Sh. 1 million of payables. Its cost of goods sold is 80% of sales Calculate: i) Cash cycle (9 marks ii) If the company could lower its inventories and receivables by 10%, all without affecting either sales or cost of goods sold, what would the new cycle be. (4 marks) How much cash would be freed up? (8 marks) tin)

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