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The most recent Financial Statements of Retail Company are as follows: Income Statement as for...

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The most recent Financial Statements of Retail Company are as follows: Income Statement as for the period ended December 31 $000 5000 Sales 452 Cost of Sales: Beginning Inventories 125 Net Cost of Purchases 341 Cost of Goods Available for Sales 466 Ending Inventories (143) Cost of Goods Sold (323) Gross Profit (Margin) 129 Expenses (132) Loss for the year (3) Balance Sheet as on December 31 $000 $000 $000 Assets: Current Assets: Inventories 143 Trade Receivables 163 Total Current Assets 306 Property, Plant and Equipment: Land 280 Fixtures & Fittings, Book Value 25 Motor Vehicles, Book Value 52 357 Total Assets 663 Liabilities: Current Liabilities: Trade Payables 145 Bank Overdraft 140 Total Current Liabilities 285 Long-Term Liabilities Loans Payable 120 Total Liabilities 405 SHE: Common Stock, $1 par value 100 Retained Earnings 158 Total SHE 258 Total Liabilities and SHE 663 The Trade Receivables and Payables were maintained at a constant level throughout the year. All Sales and Purchase are made on Credit. Required: (1) Calculate the Operating Cash Cycle based on the information above. (Assume a 360-day year) (2) Explain why a Company is concerned about its liquidity position.||

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