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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
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)Step by Step Solution
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