1. Mohammed is analyzing the performance of its cash management. On average, the firm holds inventory 65 days, pays its suppliers in 35 days, and collects its receivables in 15 days. The firm has a current annual outlay of $1,960,000 on operating cycle investments. Mohammed currently pays 10 percent for its negotiated financing. (Assume a 360 day year.) a. Calculate the firm's cash conversion cycle. (1.5 MARKS) b. Calculate the firm's operating cycle. (1.5 MARKS) c. Calculate the daily expenditure and the firm's annual savings if the operating cycle is reduced by 15 days.(1 MARK)

2. If a firm has fixed costs of $52,000, a variable cost per unit of $3 and sales price per unit of $14, what is the firms breakeven point in units?(4 MARKS)

3. The Marwell Corporation manufactures baseball bats with Babe Ruths autograph stamped on them. Each bat sells for $59 and has a variable cost of $31. There are $42,840 in fixed costs involved in the production process. Compute the break-even point in units. (4 MARKS)

4. Alamal Company has fixed costs of $232,400, sells its units for $62, and has variable costs of $34 per unit. Compute the break-even point.( 4 MARKS)

5. Welcome Products has credit sales of $2,412,000 and accounts receivable of $509,200. Compute the value of the average collection period. Note: Use a 360-day year. (4 MARKS)