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Note: Plz answer within in 40 minutes, I need it on urgent basis XYZ Ltd. Has obtained the following data concerning the average working capital

Note: Plz answer within in 40 minutes, I need it on urgent basis

XYZ Ltd. Has obtained the following data concerning the average working capital cycle for other companies in the same industry:

Raw material stock turnover

20 days

Credit received

40 days

Work in progress turnover

15 days

Finished goods stock turnover

40 days

Debtors collection period

60 days

95 days

Using the following data calculate the current working capital cycle for XYZ Ltd. And briefly comment on it.

(Rs. In 000)

Sales (all credit)

6,000

Cost of Production

4,200

Purchases (all credit)

1,200

Average Raw material stock

190

Average work in progress

170

Average finished goods stock

360

Average creditors

150

Average debtors

700

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