Question: Answer this question correctly and detailed calculation and explanation QQ Bhd is concerned about managing cash efciently. On average, inventories have an age of 90
Answer this question correctly and detailed calculation and explanation

QQ Bhd is concerned about managing cash efciently. On average, inventories have an age of 90 days, and accounts receivable are collected in 60 days- Accounts payable are paid approximately 30 days after they arise. The company has annual sales of about RM45 million Assume there is no difference in the investment per dollar of sales in inventory, receivables, and payables; and a 365- day year. Required: (i) Calculate the rm's operating cycle. (3 marks) (ii) Calculate the cash conversion cycle. (3 marks) (iii) Calculate the amount of resources needed to support the company's cash conversion cycle. Wore: Round your answer to the newest 2 decimal digits) (3 marks) (iv) Explain TWO (2) methods to reduce the cash conversion cycle. (4 marks)
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