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Zigg Ltd. is a wholesale distributor of a variety of imported goods to a range of retail outlets. The company specialises in supplying ornaments, small

Zigg Ltd. is a wholesale distributor of a variety of imported goods to a range of retail outlets. The company specialises in supplying ornaments, small works of art, high value furnishings (rugs, etc) and other items that the chief buyer for the company feels would have a domestic market. In seeking to improve working capital management, the financial controller has gathered the following information.

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Months Average period for which items are held in inventory 3.5 Average receivables collection period 2.5 Average payables payment period 2.0

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