Mr. Omar is a Financial Manager of an Omani industrial company located in Muscat that has another three different branches in the Omani Market. The head company besides other branches are dealing with many suppliers and many customers on a daily bases; Mr. Omar wants to evaluate the working capital in all branches for the year 2020 in order to improve the operating performance of the company and make suitable and needed decisions based on results as well as he will need some calculations with regard to the cash conversion cycle of each branch and evaluate different elements in the operating cycle so that will enable him to manage the working capital properly and improve the over whole performance in future. The Financial statements of the head company in Muscat shows a Net Sales of OMR 3,305,000, Beginning Inventory of OMR 400,000, Ending Inventory OMR 220,000, Average A/R are OMR 410,000, Average A/P are OMR 320,000, the costs of goods sold equals to OMR 1,900,000 and Net purchases are 70% of costs of goods sold. you are working in the financial department of the company and you have been assigned and two of your colleagues to assist the financial manager with regard of all needed data and information from other different departments such as warehouse, production and sales of all branches that are located in Salalah, Nizwa, Sohar to smooth and accelerate the process of managing the working capital; the following will be some issues you need to solve so you can provide accurate report to the financial manager: 39 ut of Which of the following statements is NOT correct with regard to the business working capital? a. It is the amount of funds necessary to cover the cost of operating of the business b. Net Working Capital is the excess of current assets over the current liability of the concern during a particular period c. Efficient working capital management leads to improve the operating performance of the business concern d. Efficient working capital management helps to meet short term liquidity and long term obligations d 40 out of The longer the firm accounts payable period, the: a. More delay in the payments to creditors and suppliers b. Longer the firm cash conversion cycle c. Shorter the firm inventory period d. More the delay in the accounts receivable period