This is a classic accounting exam question. They're really testing if we understand the fundamentals of working capital management. I bet the answer is options A, B, C, D, and E.
Operating profit? That's a bit of a curveball. I don't see how that would factor into the working capital days calculation. Unless they're trying to trip us up with that one!
Wait, what about Current assets and Current liabilities? Aren't those kind of important too? I guess the ratio is looking at the whole working capital picture.
Inventories days, Receivables days, and Payables days are definitely relevant to the total working capital days ratio calculation. Those are the key components of the cash conversion cycle, which is what the ratio is measuring.
Carlee
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