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Entrepreneurship · 2022 · 3 marks

CBSE 2022 · Central · Set 4 · Q7

(a) Give the meaning of Cash Conversion Cycle (CCC). (b) State the relationship between the Cash Conversion Cycle (CCC) and the quantum of working…

(a)
Give the meaning of Cash Conversion Cycle (CCC).
(b)
State the relationship between the Cash Conversion Cycle (CCC) and the quantum of working capital required by a business.
(c)
Calculate the Gross working capital for Ojas Ltd. from the details given below :
(₹)
i.Stock$\displaystyle 1,00,000$
ii.Debtors$\displaystyle 2,50,000$
iii.Creditors$\displaystyle 82,600$
iv.Cash$\displaystyle 38,000$
v.Short-term Investments$\displaystyle 2,00,000$
vi.Short-term Loan$\displaystyle 1,42,000$
vii.Long-term Investments$\displaystyle 3,00,000$
viii.Outstanding expenses$\displaystyle 50,000$

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