QUESTION 3 (20 MARKS) The credit analyst for Mazibuko Limited has established the following data relating to the working

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QUESTION 3 (20 MARKS) The credit analyst for Mazibuko Limitedhas established the following data relating to the working capitalcycle of the firm:  Credit payment period for raw materials 30days  Raw material delivery to completed goods 50 days  Debtorscollection period 80 days  Completed goods to credit sales 20 daysRequired: Calculate the following: 3.1.1 The cash conversion cycle(2 marks) 3.1.2 The period during which financing will be required(1 mark) 3.1.3 Discuss four measures that can be implemented toreduce the period for which financing is required (4 marks) 3.2Sadida (Pty) Ltd sells different grades of cheese to the generalpublic as well as to other retailers. The company hired you as itsmanagement accountant two months ago. Recently, you have beentasked with instituting measures to reduce the company’s rapidlyincreasing costs. After some research, you have come to therealization that the company does not make use of Economic OrderQuantity (EOQ) and you believe that this will be a good place tostart your cost-reduction journey. You have therefore rounded upthe following information regarding one of its products: Weeklydemand 2 650 units Purchase price per unit R180 Cost of placing anorder R230 Insurance 10% of the purchase price Direct stockholdingcosts R17 per unit Lead time 2 weeks Safety inventory 1 week’sdemand Required: 3.2.1 Calculate the economic order quantity forthe company. Note: round off your answer to the nearest wholenumber. (5 marks) 3.2.2 Calculate the total ordering cost for thecompany. Note: Round off your calculations to the nearest wholenumber. (4 marks) 3.2.3 Calculate the reorder point for the company(4 marks)