Calculate the operating cycle of company which gives the, Financial Management

Calculate the operating cycle of company which gives the

Question:

Calculate the operating cycle of company which gives the following details relating to its operations.

Particular	Rs.
raw material consumption per annum	842000
Annual cost of production	1425000
Annual cost of sales	1530000
Average value of current assets held:
raw materials	124000
Work in progress	72000
Finished goods	122000
Debtors	260000
Annual sales	1950000

The company gets 30 days credit from its suppliers. All sales made by the firm are on credit only. You may take one year as equal to 365 days.

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