internal source of finance

Which paper?" in dec 20213....."

sorry for the typo! its p3 dec 2012 q3 part c

Which part of the model answer is causing problems. It all seems to be set out plainly: Receivables should be (30 days) 1600 x 30/365 = 131.5, actually are 260, so improvement could be 260 - 131.5 = 128.5 Payables: if paid after 40 days would be 1375 x 20/365 = 150.7, actually are 75, so extending period would increase cash be 75.7 Total cash that could be generated by these measures is approx 204 (= 128.5 + 150.7)

thnx alot sir. now i got it