Merbatty boat case NoV 2007
I know that we usually calculate the working capital cycle as
Debtors days + Inventory days - Creditors days = Working capital cycle.
But while I was analysing the preseen for Merbatty boat case (Nov 2007) it included information that customers were paying for boats in set installments and I feel that because they are partly financing the working capital cycle, this should also be incorporated in calculating the working capital cycle.
I do have the answer for this calculation. However please I need someone to show me how they got the answer. (I hope someone who is analysing past cases would kindly help me in this problem)