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Nancy has just been appointed as the CFO of a small-sized food company ABC Food,...

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Nancy has just been appointed as the CFO of a small-sized food company ABC Food, Inc., and is keen to measure the firm's cash conversion cycle, operating cycle, and payment cycle, so as to see if any changes are warranted. She collects the necessary information at the end of December 2020, and puts together the table below (Assume there are 365 days in a year): Total sales $800,000 Cost of goods sold $640,000 Accounts receivable Inventory Accounts payable Beginning Balance Ending Balance $40,000 $36,000- $10,000 $ 6,000 $ 9,000 $15,000 a) Calculate the average payable period and average receivable period b) Calculate the cash conversion cycle for the year to end December 2020.- c) ABC Food, Inc., has recently installed a just-in-time (JIT) inventory system. Describe the effect this is likely to have on the company's carrying costs, and operating cycle

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