Theydon Limited has the following efficiency ratios at 31 January 2013: Average inventory turnover period: 77.8 days Average trade receivables period: 66.4 days Average trade payables period: 108.4...

Average inventory turnover period: 77.8 days

Average trade receivables period: 66.4 days

Average trade payables period: 108.4 days

Theydon Limited supplies fashionable women’s clothing to retail outlets. On average its suppliers allow the company 37 days credit. The company’s policy in respect of trade receivables is to allow 30 days credit.

Required: calculate Theydon’s operating cycle from the information given above, and analyze its working capital management as evidenced by the figures.