Alpha company purchases materials on day 0 and pay for them on day 60. By day 40, Alpha has converted the raw materials purchased on day 0 into finished goods, which are then immediately and fully sold.

On day 70, Alphas customers pay for their purchases.

1. Compute Inventory period, Accounts receivables period and the operating cycle of Alpha?

2. Compute the Cash Cycle of the firm?

3. What impacts would a large Cash cycle have on the firms strategy?