From the following information of Ganpati Ltd., you are required to calculate : Particulars (₹) Raw material inventory consumed during the year 6,00,000 Average stock of raw material 50,000 Average cost of production 5,0
CS Professional · Strategic Management and Corporate Finance · PYQS · June 2024
From the following information of Ganpati Ltd., you are required to calculate : Particulars (₹) Raw material inventory consumed during the year 6,00,000 Average stock of raw material 50,000 Average cost of production 5,00,000 Average work-in-progress inventory 30,000 Cost of goods sold during the year 8,00,000 Average finished goods stock held 40,000 Average collection period from debtors 45 days Average credit period availed 30 days No. of days in a year 360 days (ii) Number of operating cycles in a year.
Answer & Explanation:
Answer 5(b) (ii) Number of operating cycles in a year Number of operating cycles in a year = Number of days in a year / Operating cycle period = 360 / 85 days = 4.23 times
Topics: Corporate Finance
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