Question 8 (10 marks) The following information is extracted from the financial statements of XP Sports Limited: Accounts Payable Notes Payable $1,721,669 $2,113,345 Cash Accounts Receivable Inventories Total Current Assets Net Sales $677,423 $1,845,113 $1,312,478 $3,835,014 $9,912,332 $5,947,399 Total Current Liabilities $3,835,014 Cost (a) Briefly explain what you understand by the term 'operating cycle'. (2 marks) Click or tap here to enter text. Ac GO ORI E (b) What is the operating cycle for XP Sports Limited? (2 marks) Click or tap here to enter text. c) What can you say about XP Sports accounts receivable and inventory management if it is known that the industry average operating cycle is 72 days? (1 mark) Click or tap here to enter text. (d) Briefly explain what you understand by the 'cash conversion cycle'. (2 marks) Click or tap here to enter text. (e) What is the cash conversion cycle for XP Sports Limited? (2 marks) Click or tap here to enter text. (f) What can you say about XP Sports cash conversion cycle if it is known that the industry average cash conversion cycle is 42 days? (1 mark) Activ Go to