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    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 Correct Answer Incorrect Answer
    B 135 days; ₹3 crore Correct Answer Incorrect Answer
    C 90 days; ₹2.25 crore Correct Answer Incorrect Answer
    D 120 days; ₹2 crore Correct Answer Incorrect Answer
    E 150 days; ₹3.5 crore Correct Answer Incorrect Answer

    Solution

    WCC = 90 + 60 – 45 = 105 days; 

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