Working CapitalForums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › Working CapitalThis topic has 1 reply, 2 voices, and was last updated 3 years ago by John Moffat.Viewing 2 posts - 1 through 2 (of 2 total)AuthorPosts August 15, 2020 at 12:55 pm #580669 adarsh1997ParticipantTopics: 639Replies: 282☆☆☆☆Hello John,Please help me with the following question-Annual Credit Sales:$27m -Cost of sales: $15m -Trade receivables days:50 days -Inventory days:60 days -Trade Payable: 45 daysWhat is the net investment in working capital required?1. In the answer, trade payables is calculated as $15m *45/360. -Please explain, why $15m was used in the calculation.Thanks August 15, 2020 at 3:37 pm #580685 John MoffatKeymasterTopics: 56Replies: 54179☆☆☆☆☆What else could you assume on the information given?We are forced to assume that the cost of sales is all purchases on credit.AuthorPostsViewing 2 posts - 1 through 2 (of 2 total)You must be logged in to reply to this topic.Log In Username: Password: Keep me signed in Log In