Question

    A company maintains average receivables of ₹5 lakh,

    inventory of ₹3 lakh, and payables of ₹2 lakh. If cost of goods sold is ₹60 lakh annually, compute the working capital cycle.
    A 30 days Correct Answer Incorrect Answer
    B 45 days Correct Answer Incorrect Answer
    C 36 days Correct Answer Incorrect Answer
    D 52 days Correct Answer Incorrect Answer
    E 60 days Correct Answer Incorrect Answer

    Solution

    WCC = (Receivables + Inventory – Payables) ÷ Daily COGS = (5+3–2)/ (60/360) = 36 days

    Practice Next
    More Accounts Questions
    ask-question