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QUESTION TWO: Suppose you obtained information from the financial report of Colop Plc as tabulated as follows: K'000 Credit Sales 2,500 Cost of Goods Sold

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QUESTION TWO: Suppose you obtained information from the financial report of Colop Plc as tabulated as follows: K'000 Credit Sales 2,500 Cost of Goods Sold 1,150 Debtors 2,100 Stocks-Ending balance 1,155 Required: i). Explain what is meant by the term operating cycle and why it is Important. 10 Marks ii). Based on the information extracted from the books of Colop Plc Calculate the operating cycle. 10 Marks TOTAL=20 Marks QUESTION TWO: Suppose you obtained information from the financial report of Colop Plc as tabulated as follows: K'000 Credit Sales 2,500 Cost of Goods Sold 1,150 Debtors 2,100 Stocks-Ending balance 1,155 Required: i). Explain what is meant by the term operating cycle and why it is Important. 10 Marks ii). Based on the information extracted from the books of Colop Plc Calculate the operating cycle. 10 Marks TOTAL=20 Marks

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