The following data are the cost and expected sales for the next three years of a potential project being considered by FFEW Limited: Year G 1 2 3 Project cost -150 l$ millions] Sales 214 l$ millions] The working capital requirements of the project are estimated to be 41% of sales and need to be in place at the beginning of the relevant year. Calculate the cash inflow or outflow, in $ millions, that needs to be included in the year 2 cash flows to reflect the working capital requirements. A cash inflow should be shown as a positive number and a cash outflow should be shown as a negative number. Answer: The following information is available for Trewquest Limited for the latest financial year: Sales ($ millions, all on credit) 97.2 Cost of sales ($ millions) 47.5 Net profit ($ millions) 16.8 Current ratio 2.3 Accounts receivable turnover 21.6 Inventory turnover 11.5 Fixed asset turnover 0.52 Accounts payable turnover 17 Return on equity (%) 22 Calculate the operating cash cycle in days for Trewquest Limited. Show your answer to the nearest 0.1 days. Answer:Jutry Limited is considering a change in credit policy which is expected to increase sales revenue from $240,000 to $316,000 and increase accounts receivable from $20,000 to $79,000 with all other working capital items unaffected. Jutry Limited requires a return of 14% on investments in working capital. What is the minimum expected increase in profit necessary to justify the change in credit policy