Question: The receivables and payables were maintained at a constant level throughout the year, and all transactions were on credit basis. (a) Explain why the concept

The receivables and payables were maintained at a constant level throughout the year, and all transactions were on credit basis.

(a) Explain why the concept of operating cash cycle is important in the financial management of a business.

(b) Calculate the operating cash cycle for Sedap Rasa Berhad based on the information given (assume a 365 day year).

(c) State what steps might be taken to improve the operating cash cycle.

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