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1.Chubby Co. is a producer of honeycured ham, has a annual sales of P10,000,000, a cost of goods sold of 75% of sales, and purchases

1.Chubby Co. is a producer of honeycured ham, has a annual sales of P10,000,000, a cost of goods sold of 75% of sales, and purchases are 65% of cost of goods sold. Chubby has an average age of inventory of 60 days (AAI), and an average collection period (ACP)of 40 days, its average payment period (APP) is 35 days.

a.What is Its Operating cycle?

b.What is its Cash Conversion Cycle?

c.What is the amount of resources invested in its cash

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