The financial statements of Freezeqwik Ltd, a distributor of frozen foods, are set out below for the year ended 31 December last year.

All purchases and sales are on credit. There has been no change in the level of trade receivables or payables over the period.

Required: 

Calculate the length of the OCC for the business and go on to suggest how the business may seek to reduce this period.

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Income statement for the year ended 31 December last year £000 £000 Sales revenue 820 Cost of sales Opening inventories 142 Purchases 568 710 (166) Closing inventories Gross profit Administration expenses Distribution expenses (544) 276 (120) (95) Operating profit Financial expenses 61 (32) Profit before taxation 29 Taxation Profit for the year 22 Statement of financial position as at 31 December last year £000 Non-current assets Property, plant and equipment Premises at valuation less depreciation 180 Fixtures and fittings at cost less depreciation Motor vans at cost less depreciation 82 102 364 Current assets Inventories 166 Trade receivables 264 Cash 24 454 Total assets 818 Equity Ordinary share capital Share premium account Retained earnings 300 200 152 652 Current liabilities Trade payables 159 Taxation 166 Total equity and liabilities 818