Question

ABC Ltd. furnishes following information:. a) Average debtors (outstanding) = 480 b) Raw material consumption = 4,400 c) Total production cost = 10,000 d) Total cost of sales = 10,500 e) Credit sales for the year = 16,000 Value of average stock maintained: Raw material = 320, Work-in-progress = 350, Finished goods = 260, Average period of credit allowed by suppliers: 16 days, Assume period covered: 365 days. 1) Compute duration of raw material. 2) Compute Work-in-progress holding period. 3) Compute duration of finished goods 4) Compute duration of accounts receivable (Book Debt). 5) Compute duration of net operating cycle.​

Answer 1

Answer:

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Explanation:

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