Page 391 - F1 Integrated Workbook STUDENT 2018
P. 391
Working capitaal management
Exxampple 1
XYZZ has the ffollowing fiigures fromm its most recent acccounts.
Reqquired:
Usee this infoormation too answer the illustrrations below, to caalculate the
releevant worrking capittal ratios.
Round your answers tto the neaarest day.
$mm
Aveerage tradee receivables 4
Aveerage tradee payabless 2
Aveerage raw material innventory 1
Aveerage WIP inventory 1.3
Aveerage finishhed goodss inventory 2
Sales (80% oon credit) 30
Materials usaage 20
Materials purcchases (all on credit)) 18
Prooduction coost 23
Cosst of sales 25
(1) Calculatte the raw materials hholding period.
(2) Calculatte the WIP holding peeriod.
(3) Calculatte the finishhed goodss inventory holding peeriod.
(4) Calculatte the tradee receivable days.
(5) Calculatte the tradee payable d days.
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