An accountant has calculated the following ratios for his company for the last three years.

(Remember: To convert turnovers into time periods, divide 365 days by the turnover.)

2018 2019 2020

Accounts receivable turnover 7 8 9

Inventory turnover 3 3.5 4

Accounts payable turnover 4 3.5 3

i) Calculate the Operating Cash Cycle time for each of the three years.

ii) Comment on the significance of the Operating Cash Cycle for the management.