Comfort Living Ltd competes in the home electrical markets alongside Harvey Norman and The Good Guys. The market is highly competitive prompting management to review working capital practices. Detailed below are relevant figures and ratios to assist you in evaluating Comfort Livings working capital management.
(a) Review Comfort Livings working capital management performance utilizing the above information/benchmark figures/industry averages and budgets (250 words).
(b) Once you have analyzed their performance, provide some strategies and recommendations to assist in improving any weaknesses in working capital management referring to the management of components of working
capital including cash, inventory, accounts receivable and accounts payable. As part of you’re recommendations identify the associated potential benefits and costs of each recommendation? (250-word
limit)
