Inventory turnover = 3 times Accounts receivable turnover = 5 times Accounts payable turnover = 4 times Despite the abov

[answerhappygod]

Inventory turnover = 3 times Accounts receivable turnover = 5
times Accounts payable turnover = 4 times Despite the above ratios
found from the financial statements, ABC company offers its
customers a credit period of 60 days and the company’s supplier
offers it a credit period of 100 days. Industry average inventory
turnover is 4 times. Assume there are 360 days in a year. (a)
Calculate the operating and cash cycle of ABC company. (4 marks)
(b) How can ABC company better manage its working capital
management via its cash cycle management?