CHAPTER FIVE Cash and Marketable Securities Management 141 September 2013: Section B. Question 4 (b) JMD Corporation, which has an annual cash outlay of RM450,000, is determining minimum operating cash holding to avoid unnecessary idle cash. All sales are on 45 days credit and all credit purchases are settled on the 35th day after date of purchase. However its inventories take an average 65 days store holding period before they are sold. Calculate the following: i) The cash cycle. The cash turnover iii) The minimum operating cash. (4 marks) (2 marks) (2 marks)