What is a Cash Cycle? Explain. Calculate using the following information. (Assume 360 days in a year). (10 Marks)

Opening Balances

Raw Material 1,00,000

WIP 45,000

Finishes Goods 1,35,000

Debtors 6,00,000

Creditors 8,60,000

Closing Balances

Raw Material 2,00,000

WIP 65,000

Finishes Goods 1,25,000

Debtors 5,45,000

Creditors 9,75,000

Costs Incurred during the year

Manufacturing Costs 11,60,000

Excise Duty 18,80,000

Selling and Distribution Expenses 6,20,000

Admin. Overheads 2,00,000

Total Sales 2,01,96,800

Total Purchases 1,46,00,000

40% of sales are on credit and 70% of purchases are on credit