Question $1$

Not yet answered

Marked out of $25\mathrm{.}00$

You are a financial manager of ValueRite retailer based in Johannesburg.

The following financial information is provided to you, assuming a $365-$day year:

Sales $($or credit sales$)($R$50-$million$)$

Cost of sales $($R$35-$million$)$

Value of goods in inventory $($R$10-$million$)$

Accounts receivable $($R$20-$million$)$

Accounts payable $($R$11-$million$).$

Tasks:

Calculate the Inventory Convention Period $($ICP$),$ Average Collection Period $($ACP$),$ Accounts Payable Deferral Period $($APDP$)$ and Cash Conversion Cycle $($CCC$)$ of the retailer for the year $2022.(20$ marks$)$

The management has asked you for your advice on three techniques that they could implement to ensure that their debtors pay early. $(5$ marks$)$