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Salamku Trading is planning to purchase raw materials on 1st April 2020 and the payment will be on credit term net 60. The goods will
Salamku Trading is planning to purchase raw materials on 1st April 2020 and the payment will be on credit term net 60. The goods will be sold on 30th June 2020 with the credit term 4/10 net 50. Meanwhile, total initial outlays of the company are RM 550,000 and the annual sales of the company are RM 250,000.
1. Calculate:
i) Operating Cycle
ii) Cash cycle
iii) Cash turnover
iv) Minimum operating cash
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