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  3. for period* year end for period* year end $ s $ $

For period* Year end For period* Year end $ S $ $ Net credit sales...

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Accounting

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For period* Year end For period* Year end $ S $ $ Net credit sales 360,000 480,000 Cost of sales 234,000 264,000 Cash 27,400 18,700 Accounts receivable 45,000 41,700 68,600 72,300 Inventory 46,800 42,400 66,000 70,400 Accounts payable 38,600 36,700 47,500 50,300 *Represents average for asset and liability accounts. Required: a. For each company, calculate: i. working capital (1 mark) ii. current ratio (1 mark) iii. quick ratio (1 mark) iv. inventory turnover period in days (1 mark) v. accounts receivable turnover period in days (1 mark) vi. accounts payable turnover period in days (2 mark) vii. operating cycle in days (1 mark) b. Which company is more efficient is managing their working capital? Support your arguments by the calculations provided in question (a) above. (2 marks)

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