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Question 4 [29] Gentronics (Pty) Ltd is a small manufacturer of 3.0Kv and 7.5Kv generators that can be used by households and small businesses to meet critical electricity needs in times of power outages. Job Duma is the financial manager of the company and the chief executive officer (CEO), having realised the importance of cash flow and working capital management for a business entity, has instructed Job to determine the cash operating cycle of the company. Job gathered the following information from various financial records: Extract from the cost statement for the year ending 30 June 2018 Rand Inventory levels: Raw materials Work-in-progress Finished goods 68 000 88 000 95 000 Materials purchased Revenue for the period Production cost Cost of sales 410 000 756 000 550 400 456 000 Extract from statement of financial position as at 30 June 2018 Trade and other receivables Trade and other payables Cash and cash equivalents Inventory Rand 95 000 98 500 55 600 110 000 Additional information: The accountant indicated that 90% of the 2017-2018 sales revenue were credit sales. . The CEO estimates revenue for the period 1 July 2018 to 30 June 2019 to be R1 100 200, The CEO also estimates that 70% of the estimated increase in sales will be credit sales. The after-tax profit margin on sales is 8% and the company will retain 70%. Required 4.1. Use the information provided to determine Gentronics' cash operating cycle. (12) 4.2. Determine the net working capital required for the period July 2018 to June 2019. (17) Show all formulas and calculations, and round off your final answer to the nearest whole number. Question 4 [29] Gentronics (Pty) Ltd is a small manufacturer of 3.0Kv and 7.5Kv generators that can be used by households and small businesses to meet critical electricity needs in times of power outages. Job Duma is the financial manager of the company and the chief executive officer (CEO), having realised the importance of cash flow and working capital management for a business entity, has instructed Job to determine the cash operating cycle of the company. Job gathered the following information from various financial records: Extract from the cost statement for the year ending 30 June 2018 Rand Inventory levels: Raw materials Work-in-progress Finished goods 68 000 88 000 95 000 Materials purchased Revenue for the period Production cost Cost of sales 410 000 756 000 550 400 456 000 Extract from statement of financial position as at 30 June 2018 Trade and other receivables Trade and other payables Cash and cash equivalents Inventory Rand 95 000 98 500 55 600 110 000 Additional information: The accountant indicated that 90% of the 2017-2018 sales revenue were credit sales. . The CEO estimates revenue for the period 1 July 2018 to 30 June 2019 to be R1 100 200, The CEO also estimates that 70% of the estimated increase in sales will be credit sales. The after-tax profit margin on sales is 8% and the company will retain 70%. Required 4.1. Use the information provided to determine Gentronics' cash operating cycle. (12) 4.2. Determine the net working capital required for the period July 2018 to June 2019. (17) Show all formulas and calculations, and round off your final answer to the nearest whole number

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