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The following balances were extracted from the books of Ushauri Ltd. for the year 2020: Balance sheet as at: ...

      

The following balances were extracted from the books of Ushauri Ltd. for the year 2020:
Balance sheet as at:
Beginning of year End of year
Sh. "000" Sh. "000"
Finished goods stock 1,000 4,000
Accounts receivables 1,500 4,500
Accounts payable 1,200 2,800

Additional information:
1. The firm’s sales and cost of sales are sh.20 million and sh.15 million respectively. 80% of the firm’s sales are credit sales.
2. All purchases of stock are on credit basis.
(Assume that a year has 360 days)

Required:
The firm’s working capital operating cycle for the year 2020.

  

Answers


Francis
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francis1897 answered the question on November 8, 2022 at 08:09


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