1. How do you compute the operating cycle and the cash cycle?

Define the two cycles and make a comparative analysis between them.

Define the three turnover ratios/periods and make a comparative analysis among them (i.e., Inventory, A/R and A/P).

Discuss the strategies to shorten the cash cycle and address their consequences.

2. What are the key components of a cash budget? Next, describe how to do the cash budget.

Define cash budget and address why firms need to do it.

Describe how to compute cash collection, cash disbursement and cash surplus/deficit.

Address the potential problems of cash budget in practice.