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PLEASE HELP ME ON THIS ............................EMERGENCY ................... (b) Suppose that Spinfluence Berhad has annual sales of RM230,000; cost of goods sold of RM165,000; average inventories

PLEASE HELP ME ON THIS ............................EMERGENCY ...................

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(b) Suppose that Spinfluence Berhad has annual sales of RM230,000; cost of goods sold of RM165,000; average inventories of RM4,500; average accounts receivable of RM25,000.00; average accounts payable balance of RM7,000.00 and purchases represent 80% of cost of goods sold. (Note: Use a 365-day year). (i) Assuming that all of Spinfluence's sales and purchases are on credit, what will be the firm's cash conversion cycle? (8 marks) (ii) Explain whether the cash conversion cycle (CCC) better represents the liquidity, or profitability position of a company. (3 marks) (iii) What is the importance of cash conversion cycle (CCC) in relation to the company's working capital requirement? (4 marks)

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