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Use the given information about BBB Pty Ltd to answer the questions that follow: Sales P10, 000,000 Average inventories P2, 000,000 Cost of goods sold

Use the given information about BBB Pty Ltd to answer the questions that follow: Sales P10, 000,000 Average inventories P2, 000,000 Cost of goods sold P8, 000,000 Receivables P666, 667 Average Accounts payable P666, 667 Required: a. Define the cash conversion cycle. (2 marks) b. Calculate BBBs Average Age of Inventory. (4 marks) c. Calculate BBBs Average Collection Period. (4 marks) d. Calculate the Accounts Payable Period. (4 marks) e. Calculate the BBBs cash conversion cycle. (4 marks) f. Advise BBB on what they should do to reduce their cash conversion cycle. (3 marks) g. Explain two strategies that BBB can use to fund its cash conversion cycle requirements. (4 marks)

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