Deewan Motors provides you following information about its key working capital accounts for

the year 2019:

Key Accounts ($m):

Accounts receivable 2.5 ,Revenue 10,

Inventories 1.5 ,Cost of sales 60% of sales, and

Trades Payable 1.0

a) Compute key working capital ratios for the given year. [1.5marks]

b) What is Deewan's CCC? [1mark]

c) If Deewan could lower its receivables by 2%, inventories by 7%, and increase its

payables by 7% while keeping revenue and cost of sales unchanged. What would be

Deewan's CCC? [2.5marks]