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Calculate the operating cycle of company

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Question:

Calculate the operating cycle of company which gives the following details relating to its operations.

Particular Rs.
raw material consumption per annum 842000
Annual cost of production 1425000
Annual cost of sales 1530000
Average value of current assets held: 
raw materials 124000
Work in progress 72000
Finished goods 122000
Debtors 260000
Annual sales 1950000

The company gets 30 days credit from its suppliers. All sales made by the firm are on credit only. You may take one year as equal to 365 days.

Reference no: EM131654677

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len1654677

9/23/2017 2:52:06 AM

calculate the operating cycle of company which gives the following details relating to its operations. Particular raw material consumption per annum 842000. Annual cost of production 1425000. Annual cost of sales 1530000. Annual sales 1950000.average value of current assets held: raw materials 124000. Work in progress 72000. Finished goods 122000. Debtors 260000. The company gets 30 days credit from its suppliers.All sales made by the firm are on credit only. You may take one year as equal to 365 days.

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