Vancouver Sun Corp. collects 35% of its monthly sales immediately and the rest a month later. Its production costs are 60% of sales. It holds 1 month of sales in inventory, and it pays 60% its bills immediately and 40% after 30 days. Calculate the cash conversion cycle and the operating cycle for Vancouver Sushi Limited.

Required:

a) (5 marks) Calculate the operating cycle.

b) (5 marks) Calculate the cash conversion cycle.

c) (5 marks) Give five (5) suggestions to shorten the cash conversion cycle.