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ILLUSTRATION 11 The following information is available in respect of Saitrading company:On an average, debtors are collected after 45 days; inventories have an averageholding period of 75 days and creditor's payment period on an average is 30 days.The firm spends a total of 120 lakhs annually at a constant rate.() it can earn 10 per cent on investments.From the above information, you are required to calculate:(a) The cash cycle and cash turnover,(b) Minimum amounts of cash to be maintained to meet payments as they become due,( Savings by reducing the average inventory holding period by 30 days.​

Answer» ILLUSTRATION 11The following information is available in respect of Saitrading company:On an average, debtors are collected after 45 days; inventories have an averageholding period of 75 days and creditor's payment period on an average is 30 days.The firm spends a total of 120 lakhs annually at a constant RATE.() it can earn 10 per cent on investments.From the above information, you are REQUIRED to calculate:(a) The CASH cycle and cash turnover,(b) Minimum AMOUNTS of cash to be maintained to meet payments as they become due,( Savings by reducing the average inventory holding period by 30 days.The following week I will be in touch with suitable position


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