LS2503: From the following information of XYZ Ltd, Calculate:

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Question: From the following information of XYZ Ltd, Calculate:

(i)Net operating cycle period

(ii)Number of operating cycles in a year.

1. Raw material inventory consumed during the year 6,00,000

2. Average stock of raw material 50,000

3. Work-in-progress inventory 5,00,000

4. Average work-in-progress inventory 30,000

5. Finished goods inventory 8,00,000

6. Average finished goods stock held 40,000

7. Average collection period from debtors 45 days

8. Average credit period availed 30 days

9. No of days in a year 360 days

 


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