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    Question

    XYZ Ltd has the following financial data: тАв

    Inventory Holding Period: 90 days тАв Receivables Collection Period: 60 days тАв Payables Deferral Period: 45 days тАв Annual Sales: тВ╣12 crore (all on credit) тАв Cost of Sales: тВ╣9 crore Compute the working capital cycle and average working capital requirement.
    A 105 days; тВ╣2.5 crore Correct Answer Incorrect Answer
    B 135 days; тВ╣3 crore Correct Answer Incorrect Answer
    C 90 days; тВ╣2.25 crore Correct Answer Incorrect Answer
    D 120 days; тВ╣2 crore Correct Answer Incorrect Answer
    E 150 days; тВ╣3.5 crore Correct Answer Incorrect Answer

    Solution

    WCC = 90 + 60 тАУ 45 = 105 days;┬а

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