Calculate total average investment in cash conversion cycle

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The following information is an extract of the statement of profit or loss of Palladium Ltd for the current financial year:

Annual sales (20% cash) R625 000
Cost of Sales R125 000
Purchases (50% on credit) R200 000

The average accounts receivable collection period is 45 days. The average payment supplier period is 50 days and the cash conversion cycle has been calculated as 55 days.

REQUIRED: Q.4.1 Calculate the total average investment in the cash conversion cycle (CCC) for Palladium Ltd. Assume that there are 365 days in a year.

Reference no: EM132656354

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