On the basis of the following information, calculate the operating cycle of Raksha Goods Limited : Particulars As at April 1, 2019 As at March 31, 2020 Inventory ₹ 4,00,000 ₹ 3,80,000 Accounts receivable ₹ 18,00,000 ₹ 22

Calculation of Operating Cycle of Raksha Goods Limited Operating cycle = Inventory period + Accounts receivable period Inventory period = Average inventory/Cost of goods sold * 365 Average Inventory = (₹4,00,000 + ₹3,80,000)/2 = ₹3,90,000 Inventory period = ₹3,90,000/₹1,55,00,000 * 365 = 9.18 days Average Accounts receivable = (₹18,00,000 + ₹22,50,000)/2 = ₹20,25,000 Accounts receivable period = ₹20,25,000 / ₹2,65,00,000 * 365 = 27.89 days Operating cycle = 9.18 + 27.89 days = 37.07 days