Page 18 - CIMA OCS Workbook February 2019 - Day 2 Tasks

CIMA FEBRUARY 2019 – OPERATIONAL CASE STUDY

I’ve obtained some key financial data relating to Parkes’ Parks who manufacture outdoor play
equipment for the commercial market only. Please see the attachment which includes the
relevant information, together with equivalent information for Trigg Adventure.

Please identify any factors which may help to explain differences in the operating cycle between
Parkes’ Parks and Trigg Adventure and make suggestions that you think would help to improve
operating cycle of Trigg Adventure, even if this means that I have to resolve any difficulties with
Ben and Sally’s preferred courses of action.

I have included a schedule summarising the Operating cycle for Parkes’ Parks and Trigg
Adventure for the most recent set of annual financial statements as Reference Material 1.

Thanks
Tony Trigg

TASK
Respond to Tony Triggs Email. (Time allowed 55 Minutes)

REFERENCE MATERIAL 1:

Attachment: Operating Cycle information

Parkes’ Parks Trigg Adventure
Year ended Year ended
30 June 2018 31 Dec 2018
Inventory days 80 days 95 days
Receivables days 45 days 24 days
Payables days 60 days 37 days
Length of operating cycle 65 days 82 days

40 KAPLAN PUBLISHING