The following financial statement is by ABC Pte Ltd

Note: the company practices JIT (just-in-time inventory) management and carries a negligible amount of inventory.

*Account receivable turnover = 6 times *Account payable turnover = 4 times

*assume that in a year consists of 365 days

i) Calculate the operating and cash cycle for ABC company.

ii) Evaluate the implications of cash cycle for ABC working capital management

iii) You are required to pay back $5300 based on the amount of $5000 you borrowed. Calculate the EAR (effective annual rate) of this loan.