Lulu hyper market in Nizwa had faced a serious cash crunch during the last year due to the pandemic. In the year 2021 the business wants to improve its internal performance and needs to account for the exact money has to be floated as working capital in order to fuel the increased activities of the business. The finance department had provided with the following information to the management accounting team to work out the Average payment period. The business has started its operations in the last year with an opening stock of OMR 5,000 and purchased OMR 20,000 worth goods from its supplier. Later, the business has rejected OMR 2,000 worth goods after the quality check conducted by the stores department. The total sales of the company for the year 2020 was OMR 40,000 out of which OMR 15,000 was on cash basis. The finance department has also provided with the following details Particulars Debtors at the beginning Debtors at the end Creditors at the berinnin Creditors at the end Stock at the end Amount in OMR R.000 12.000 6.000 4.000 000 Identify the Average payment period from the following Options? 144.57 days 101.39 days O 133.57 days 140.17 days

Lulu hyper market in Nizwa had faced a serious cash crunch during the last year due to the pandemic. In the year 2021 the business wants to improve its internal performance and needs to account for the exact money has to be floated as working capital in order to fuel the increased activities of the business. The finance department had provided with the following information to the management accounting team to work out the Average payment period. The business has started its operations in the last year with an opening stock of OMR 5,000 and purchased OMR 20,000 worth goods from its supplier. Later, the business has rejected OMR 2,000 worth goods after the quality check conducted by the stores department. The total sales of the company for the year 2020 was OMR 40,000 out of which OMR 15,000 was on cash basis. The finance department has also provided with the following details Particulars Debtors at the beginning Debtors at the end Creditors at the berinnin Creditors at the end Stock at the end Amount in OMR R.000 12.000 6.000 4.000 000 Identify the Average payment period from the following Options? 144.57 days 101.39 days O 133.57 days 140.17 days

Financial Management: Theory & Practice

16th Edition

ISBN:9781337909730

Author:Brigham

Publisher:Brigham

Chapter21: Dynamic Capital Structures And Corporate Valuation

Section: Chapter Questions

Problem 5MC: David Lyons, CEO of Lyons Solar Technologies, is concerned about his firms level of debt financing....

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