Subject: Fundamental of finance.

5. a. Calculate the cash conversion cycle for MS Tech if: Inventory conversion period = 6 days Payables credit period = 30 days Debtors collection period = 20 days (2 marks) b. Suppose MS Tech has the following estimates under its inventory management: Total annual inventory demand = 840,444 units Inventory ordering cost = RM50 per order Inventory carrying cost = RM0.03 per unit Average daily inventory demand 2,302.59 units Inventory delivery lead time = 3 days Inventory lead time demand = 6,907.77 units Inventory safety stock level = 34,539 units