Farma Corporation is planning to determine the firms minimum operating cash to reduce the firms cost of investment. Presently the firm is holding RM30,000.00 cash on the average continuously. The firm is selling its goods on credit term of 3/10 net 50. All customers normally pay on the last day. The firm pays all credit purchases on net 35. The firm takes 30 days to produce and 25 days to sell. The firms yearly cash outlay is RM400,000.00.

i. Calculate the cash conversion cycle

ii. Calculate the cash turnover

iii. Calculate the minimum operating cash