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Question 1 The following are extracts from Wiston annual accounts for the year: Items Inventories: RM (000) Raw materials Work in progress Finished goods 180
Question 1 The following are extracts from Wiston annual accounts for the year: Items Inventories: RM (000) Raw materials Work in progress Finished goods 180 50 70 Purchases Cost of sales Sales Trade receivables Trade payables 420 850 2,600 800 170 Note: 1) Wiston is a manufacturing company and has listed three types of inventories 2) The company trade payables outstanding are depending on credit purchases 3) The company's credit sales are 60% on total sales whereas the credit purchases are 75% on total purchases 4) Assume that the company operates 365 days in a year Required: Calculate the working capital cycle for the current year. (Give answer in 2 decimal places) (Total = 10 marks)
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