Question

This data of ABC Company: Sales £4,200,000; Gross profit £2,700,000; Receivables £630,000; Payables £275,000; Inventory £300,000....

This data of ABC Company:

Sales £4,200,000; Gross profit £2,700,000; Receivables £630,000; Payables £275,000; Inventory £300,000. ABC calculates its financial ratios based on being open for business 6 days per week for 50 weeks per year.

Based on data, calculate:

a. Days’ sales outstanding

b. Inventory turn over

c. Days’ payables outstanding  

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