(a)[8]
Calculate the working capital cycle ratio. Round your answer up to the next whole day.
(b)[5]
Compare your result from (a) with the industry average. Give reasons for the gap.
(c)[2]
Explain why cash sales and cash purchases could reduce the usefulness of the working capital cycle ratio to the directors.
(d)[4]
Calculate the ratio of net working assets to revenue.
(e)[3]
Compare your result from (d) with the industry average. Propose reasons for the gap.
(f)[3]
Advise the directors on whether the company ought to start offering cash discount to credit customers. Justify your answer.