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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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