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The following information relates to Xylights Ltd. as at 31 December 2019 and 2020: Year ...

      

The following information relates to Xylights Ltd. as at 31 December 2019 and 2020:
Year 2019 2020
Sh. "000" Sh. "000"
Closing stock of finished goods 2,000 3,000
Accounts receivables 3,500 5,500
Accounts payables 3,000 6,000

Additional information:
1. The total sales for the year ended 31 December 2020 were sh.20 million.
2. From past experience, 80% of the firm’s sales are on credit. This trend is not expected to change in the foreseeable future.
3. The cost of sales of the firm for the year 2020 was sh.10 million.
4. All purchases are usually on credit basis,
5. Assume that a year has 52 weeks.

Required:
The working capital cycle (in weeks) for the year ended 31 December 2020.

  

Answers


Francis
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francis1897 answered the question on November 7, 2022 at 09:37


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