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Annual credit sales of a company is RM100 million. The companys inventories and receivables are 30% and 20% out of annual credit sales respectively; whereas
Annual credit sales of a company is RM100 million. The companys inventories and receivables are 30% and 20% out of annual credit sales respectively; whereas payables are 10% out of annual credit sales. The cost of goods sold for the company is 75% of sales. Assume that there are 360 days in a year. Based on the information provided, calculate the companys operating cycle (OC) and cash conversion cycle (CCC).
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