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CIMA Exam CIMAPRA19-F01-1 Topic 2 Question 66 Discussion

Actual exam question for CIMA's CIMAPRA19-F01-1 exam
Question #: 66
Topic #: 2
[All CIMAPRA19-F01-1 Questions]

PZ has the following working capital ratios:

Which of the following could be the reason for the movements?

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Suggested Answer: C

by Alline at Feb 26, 2023, 01:21 AM

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Flo
2 days ago
The new credit controller must be a superhero or something. Imagine the power of their collections prowess! They could probably collect debt from a black hole.
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Tawanna
5 days ago
Taking discounts from suppliers is a smart move, but I don't think it alone would account for such drastic changes in the ratios. The credit controller's efforts seem to be the key factor here.
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Leonard
16 days ago
I'm not sure about the strike situation. Even if deliveries were still received, the workforce being on strike for a month would likely have some impact on the working capital ratios.
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Lacresha
19 days ago
Just-in-time inventory management could also be a valid explanation. It helps reduce the amount of cash tied up in inventory, which would boost the working capital ratios.
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Jonell
24 days ago
The new credit controller's rigorous collection procedure seems like the most likely reason for the improved working capital ratios. It's impressive how they were able to collect receivables more efficiently.
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Nell
28 days ago
That's a good point, the just-in-time system could definitely impact working capital ratios.
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Mertie
1 months ago
I disagree, I believe it's because of the just-in-time system of ordering inventory.
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Nell
1 months ago
I think the reason for the movements could be because of the new credit controller.
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