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TASK : The working capital cycle of a business is the length of time between payment for inventory, entering into inventory and receipts of the

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TASK : The working capital cycle of a business is the length of time between payment for inventory, entering into inventory and receipts of the proceeds of sales. The table below gives information extracted from the statement of comprehensive income and the Statement of Financial Position of Al-Amin Plc for the years 2017-2019. 2017 2018 2019 Inventory OMR'000 OMR'000 OMR 000 Raw materials 1,080 1,458 1,800 Work in Progress 756 972 933 Finished goods 864 1,296 1,428 Purchases 5,184 7,020 7,200 Cost of goods sold 7,560 9,720 10,983 Revenue 8,640 10,800 11,880 Trade receivables 1,728 2,592 2,970 Trade Payables 864 1,053 1,260 You are required to: 1. Calculate the Working Capital Cycle for each of the 3 years. 2. Explain 3 possible actions that might be taken to reduce the length of the cycle and 2 possible disadvantages of each. (15 Marks)

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