Cash comersion cycleCash menegement is a very important function of managers. Compenies need to manage their operations in a way that they can sustain growth and yet not run out of cash.Consider the case of the Red Hamster Manufacturing Corporation:Red Harnster Manufacturing Corporation has forecasted sales of $$30,000,000$ for next year and expects its cost of goods said $($COGS$)$ to remain at $80\%$ of sales. Currently, the firm holds $$3,100,000$ in inventories, $$2,300,000$ in accounts receivable, and $$2,500,000$ in account payable.

Approximately how long does it take Red Hamster Manufacturing to convert its raw materials to its finished products and then to sell those goods?$($Note: Use $365$ days as the length of a year in all calculations, and round all values to two decimal places.$)$ipspsO $49\mathrm{.}51$ daysO $42\mathrm{.}44$ daysO $47\mathrm{.}15$ days$35\mathrm{.}36$ days

On average, it takes From the time a sele is made untill the time cash is collected from customers.

Red Hemster Manufacturing relies on customer credit when it buys rew materials from ite suppliers. On average iL takesfirma purchases materials before it sends cash to its suppliers. The langth of Rad Hamster Manufacturing's cash cunversion cycle $($CCC$)$ is An general, tims praista$000.$after theWhie. e lhe eneth e Red nemeter Manelacsuring & cash conversion cvcia $($Coci$9114,53033\mathrm{.}40$ C $40\mathrm{.}32$ days

In general, firm prefer a CCC$.$