Session 1 Assignments: Asset Conversion Cycle and Working Investment calculations:

1) Assignment 1:
LMN company has the following financial data (each M is 000’s omitted), calculate A/R DOH,
Inventory DOH, A/P DOH, WI, ACC and CCC with adding your comment on each:

 Sales EGP 50 MM
 COGS EGP 20 MM
 Inventory EGP 2 MM
 A/R EGP 1.6 MM
 A/P EGP 800 M

a) Assignment 2: Bonus

ABC company March June September December

2018/months 3 6 9 12
509,6 976,7 1,453,4 1,892,1
Sales 64 53 47 50
378,8 707,7 1,060,3 1,337,3
COGS 68 72 57 42
144,0 151,6 137,4 53,9
Receivables 92 61 91 12
827,8 858,0 867,7 827,8
Inventory 31 70 00 09
1,026,6 809,3 784,7 804,8
Payables 95 93 63 49

Calculate and comment on each:

1. Working Investment “WI” requirements
2. Trading assets and spontaneous finance DOH
3. ACC & CCC
4. Estimate if there is a seasonal need and short term finance need
5. Permanent level of WI in each year