1. Muhammad Syafizal has just been appointed as the chief financial officer of GMP Manufacturing Company and is keen to measure the firms cash conversion cycle, operating cycle, production cycle, collection cycle, and payment cycle to see if any changes are warranted. He collects the necessary information for the most recent fiscal year as in the table below:

Selected Income Statements Items for 2020
Cash sales Credit sales	RM 250,000 RM 650,000
Total sales Cost of goods sold	RM 900,000 RM 710,000

Selected Balance Sheet Accounts
	31/12/2020	31/12/2019
Account receivable	RM 50,000	RM 46,000
Inventory	RM 20,000	RM 16,000
Account payable	RM 10,000	RM 15,000

1. Calculate GMPs average values for THREE (3) accounts.

(3 marks)

2. Calculate GMPs turnover rates for THREE (3) accounts.

(3 marks)

3. Calculate the cash conversion cycle for year for year 2020?

(4 marks)

4. Briefly explain the THREE (3) components of cash conversion cycle.

6. marks)