Question $1$

Supermax Group is electronics manufactures company based in Sarawak. Due to the Covid$-19$

pandemic and also the implementation of the Movement Control Order $($MCO$)$ and several

Standard Operation Procedures $($SOP$),$ the operation of the group has been impacted whereas the

production of the group has fallen dramatically and the revenue of the group also reduced

intensely. Below is the information from the financial statements for the Year $2020$ of the group.

$($Assumed $366$ days in the year $2020)$

TABLE $1$

You as the finance executive of the group and are currently responsible for working capital

management. By using the above information, solve the following questions.

a$)$ Determine the current net working capital of the company.

b$)$ Based on Question a$,$ justify the position of the working capital for the company.

c$)$ What would be the appropriate approach to manage the working capital for the company?

d$)$ As the Covid$-19$ pandemic and the implementation of the MCO and SOP are expected to

be temporary events. Suggest what type of financing and sources of financing that could

be utilized by the company to overcome the working capital shortage.

e$)$ Calculate the following ratios by using the above information:

i$.$ Current Ratio;

ii$.$ Quick Ratio;

iii. Inventory Conversion Period;

iv$.$ Average Collection Period; and

v$.$ Payables Deferral Period.

f$)$ Find the Cash Conversion Cycle $($CCC$)$ for the company.