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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

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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: Net working capital is O a Calculated by subtracting current liabilities from current assets b. An issue of only minor importance to most companies O c. Calculated by adding cash, accounts payable, and inventories O d. Always positive The management of current assets and current liabilities is referred to as O a. All of the given options Ob. Working capital management O c Networking capital management Od. Net assets management The time interval between purchasing raw materials and collecting on sales of finished goods is known as the a. Accounts receivable cycle O b. Operating cycle O c Accounts payable cycle Od. Inventory cycle Which of the following statements is NOT correct with regard to the business working capital? O a Efficient working capital management helps to meet short term liquidity and long term obligations O b. Net Working Capital is the excess of current assets over the current liability of the concern during a particular period c. It is the amount of funds necessary to cover the cost of operating of the business O d. Efficient working capital management leads to improve the operating performance of the business concern In response to market expectations, the average payment period has been increased from 45 days to 60 days. This would result in a. Increase in CCC b. Increase in Average Collection Period O Decrease in CCC d. Decrease in Debtors

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