Question

XYZ Ltd has the following financial data: • Inventory Holding Period: 90 days • Receivables Collection Period: 60 days • Payables Deferral Period: 45 days • Annual Sales: ₹12 crore (all on credit) • Cost of Sales: ₹9 crore Compute the working capital cycle and average working capital requirement.

A 105 days; ₹2.5 crore
B 135 days; ₹3 crore
C 90 days; ₹2.25 crore
D 120 days; ₹2 crore
E 150 days; ₹3.5 crore
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