Welcome to this article aimed at helping you with corrected exercises on the operating cycle and the WCR from the Operational Management subject of the BTS MCO.
If you would like to first review the course on the same theme, I invite you to read my article Operating cycle: 7 questions to understand everything.
The 5 corrected exercises on the operating cycle and the WCR on this page mainly concern the working capital requirement, the operating working capital requirement and the non-operating working capital requirement.
You will also find corrected exercises on the following concepts: incoming flows, outgoing flows, monetary flows, investment flows, and the Jobs Resources qualification.
Here is the list of the 5 corrected exercises:
- Corrected exercise No. 1: Ballistic Case
- Corrected exercise No. 2: Billaud case
- Corrected exercise No. 3: Briole case
- Corrected exercise No. 4: Rambole case
- Corrected exercise No. 5: Ramel case
You will also find other exercises on the operating cycle and the BFR by reading this article entitled Operating Cycle & BFR: 6 Corrected Exercises.
Corrected exercise No. 1: Ballistic Case
The Balistique business unit manufactures and sells ball bearings for cycling professionals.
In order to study the management of the company, you are responsible for examining its operating and non-operating working capital requirements.
To answer the question, we give you the distribution of accounting positions in the following appendix table:
Work to do
- Using the attached table, calculate the working capital requirement, highlighting operating and non-operating.
- Comment
Proposed correction
1/ Using the attached table, calculate the working capital requirement, highlighting operating and non-operating items.
Working capital requirement (WCR) = Inventories of goods + Operating receivables – Trade payables
BFRE = 200 + 1 – 000
BFRE = – €2
Non-operating working capital requirement (BFRHE) = Miscellaneous inventories + Miscellaneous receivables – (Tax and social security debts + Miscellaneous debts)
BFRHE = 150 + 300 – (100 + 50)
BFRHE = €300
2/ Comment
We can conclude that the total working capital requirement is equal to: BFRE + BFRHE or – 2 + 800 = -300 €
The working capital requirement is less than 0, which means that the company Balistique correctly manages its collection and disbursement periods with regard to its customers and suppliers.
Corrected exercise No. 2: Billaud case
States
The Billaud business unit manufactures and distributes plastic materials to very small businesses and SMEs.
This company has been in existence for two years and its turnover is growing steadily.
However, to date, she has never studied her exploitation closely.
They would therefore like to know whether their day-to-day business operations are being properly managed in terms of deadlines.
Annexe 1 : Business operations table (2 parts).
Annexe 1 : Accounting elements
(1): considered as part of non-exploitation.
Work to do
- Describe, by completing the table in Appendix 1, the commercial operations of the Billaud company.
- Using Appendix 2, determine the operating working capital requirement and the non-operating working capital requirement – Deduce the working capital requirement.
- Comment on the result of question 2.
Proposed correction
- Describe, by completing the table in Appendix 1, the commercial operations of the Billaud company.
2. Using Appendix 2, determine the operating working capital requirement and the non-operating working capital requirement – Deduce the working capital requirement.
BFRHE = Miscellaneous stock + 0 – (Miscellaneous debts + Tax and social security debts)
BFRHE = 60 + 0 – (50 + 150) = – €140
BFRE = Stock of goods + Customer receivables – Supplier payables
BFRE = 500 + 1 – 000 = – €3
BFR = BFRHE + BFRE
BFR = – 140 – 2
BFR = – €2
3. Comment on the result of question 2.
The working capital requirement of the Billaud company is negative.
This means that the first part of the formula (“Stock + receivables”) is less than the second part.
Which also means that the amount of stock and/or receivables is less than the “Debts” part.
Billaud therefore recovers his debts and/or quickly sells off his stock.
This means that it negotiates its collection and disbursement deadlines efficiently and intelligently with regard to its suppliers and customers.
Corrected exercise No. 3: Case Briole
States
The Briole business unit specializes in the distribution of household linen. The UC manager wants to analyze different operations.
Annexe 1 : Table of operations
Work to do
- Complete the table in Appendix 1, specifying the use and resource for each operation.
Proposed correction
Corrected exercise No. 4: Rambole case
States
The Rambole company specializes in the distribution of spare parts for large household appliances to major distributors.
The manager, Mr. Lage, sends you some accounting elements in order to carry out a short study on the operation of the company.
Annexe 1 : Accounting elements
Work to do
- Determine the working capital requirement.
Proposed correction
BFR = Stocks + Receivables – Debts
BFR = 500 + 3 – 500
BFR = €3
The working capital requirement is greater than 0, which means that the Rambole company is not properly managing its collection and disbursement periods with regard to its customers and suppliers.
Corrected exercise No. 5: Ramel case
States
The Ramel business unit specializes in the distribution of dairy products to businesses.
The manager, Mrs. Moux, gives you the table of operations carried out in March N.
Annexe 1 : March Operations Table N
Work to do
- Complete the table in Appendix 1.
Proposed correction
I am 52 years old and have returned to my studies. I am currently in my second year of a degree in business creation and management.
I would like to thank you for the contribution you have made to my studies.
please
Hello,
It is I who thank you.
Good luck to you.
Thank you very much excellent ?
Hello Nina,
It's me who thanks you for visiting my blog.
I avoided taking classes at my institution because I understand your classes well.
thank you teacher
I am revising my exams entirely thanks to your lessons and especially your exercises because they are very clear and we have the corrections, it's perfect, I really thank you for all the help you give me.
Hello Simon,
Thank you for your message.
And especially SHIT for your exams.