A.Describe the components of working capital. Explain three actions that could help to improve the management of working capital. (9 points)

B.Mosaic Ltd has the following ratios:

Inventory turnover period = 103 days

Average settlement period for accounts receivable = 118 days

Average settlement period for accounts payable = 102 days

TASK for question 3 B.

i.How long (in days) is the operating cash cycle for Mosaic Ltd.? (3 points)

ii.Define operating cash cycle? (3 points)

iii.Recommend three ways that Mosaic Ltd. may seek to reduce their operating cash cycle. (10 points)