QUESTION 3 _(22 MARKS) Zhilin Sdn Bhd is a drink manufacturer and it produce variety of drinks and flavors with brand of Rasaku. Last year, its sales were RM1,200,000 and its cost of goods sold was 15% from its sales. Its inventory turnover ratio was 7 times, its day sales outstanding (DSO) was 40 days and its Accounts Payable was RM75,000. The management decides to increase its sales by 20% in this year and the COGS is remain at 15% of its sales. The firm has to increase its inventory turnover ratio, reduce its DSO and lengthen the payable deferral period (PDP). Therefore, the firm decided to increase its inventories by 20% from last year inventory. Besides, the firm has to increase its accounts payable by RM10,000 and reducing its accounts receivable by 10% compared to last year. Required: Compare the last year and current year cash conversion cycle (CCC). (10 marks) (CLO2:PL06:05) b. Analyse either the firm improve its CCC, inventory conversion period (ICP), DSO and its PDP? What are the benefits if the firm able to improve has its planned? (7 marks) (CLO2:PL06:05) Is the inventory turnover ratio improved? Why the firm concern to improve its inventory turnover ratio? (5 marks) (CLO2:PLO6:C5) a. C. QUESTION 3 _(22 MARKS) Zhilin Sdn Bhd is a drink manufacturer and it produce variety of drinks and flavors with brand of Rasaku. Last year, its sales were RM1,200,000 and its cost of goods sold was 15% from its sales. Its inventory turnover ratio was 7 times, its day sales outstanding (DSO) was 40 days and its Accounts Payable was RM75,000. The management decides to increase its sales by 20% in this year and the COGS is remain at 15% of its sales. The firm has to increase its inventory turnover ratio, reduce its DSO and lengthen the payable deferral period (PDP). Therefore, the firm decided to increase its inventories by 20% from last year inventory. Besides, the firm has to increase its accounts payable by RM10,000 and reducing its accounts receivable by 10% compared to last year. Required: Compare the last year and current year cash conversion cycle (CCC). (10 marks) (CLO2:PL06:05) b. Analyse either the firm improve its CCC, inventory conversion period (ICP), DSO and its PDP? What are the benefits if the firm able to improve has its planned? (7 marks) (CLO2:PL06:05) Is the inventory turnover ratio improved? Why the firm concern to improve its inventory turnover ratio? (5 marks) (CLO2:PLO6:C5) a. C