Question: Please show all steps American Products is concerned about managing cash effiently. On average, inventories have an age of 90 days, and accounts receivable are

Please show all steps

American Products is concerned about managing cash effiently. On average, inventories have an age of 90 days, and accounts receivable are collected in 60 days. Account payables are paid approximately 30 days after they arise. The firm has annual sales of about $30 million. Assume there is no difference in the investment per dollar of sales in inventory, receivables, and payables and that there is a 365-day year.

A. Calculate the firm's operating cycle.

B. Calculate the firm's cash conversion cycle.

C. Calculate the amount of resourcces needed to support the firm's cash conversion cycle.

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