Question

CASH CONVERSIUN LYLLE arramore Corp has $19 million of sales, $3 million of inventores, $3 million of receivables, and $1 million of payables. Its cost of goods sold is 75% of sales, and it finances working capital with sank loans at an % rate. Assume 365 days in year for your calculations. Do not found intermediate steps. 1. What is Parramore's cash Conversion cycle (CCC)? Do not found intermediate calculations. Round your answer to two decimal places 2. If Parramore could lower its inventories and receivables by 79 each and increase its payables by 7%, all without affecting sales or cost of goods sold, what would be the new COC? Do not found intermediate calculations. Round your answer to two decimal places Microsoft OneDrive days 3. How much cash would be freed up, Paramore could lower its inventories and receivables by 7% each and increase its payables by 7%, all without affecting sales or cost of goods sold? Do not round intermediate calculations. Round your answer to the nearest cent. Write out your answer completely. For example, 13.2 million should be entered a 13,200,000 4. By how much would pretax profits change, if Parramore could lower its inventories and receivables by each and increases payables by all without wifecting or cost of goods sold? Do not found intermediate calculations, Round your answer to the nearest cent. Write out your answer completely. For example, 13.2 million should be entered as 13,200,000