Parramore Corp has $10 million of sales, $1 million of inventories, $4 million of receivables, and...

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Parramore Corp has $10 million of sales, $1 million ofinventories, $4 million of receivables, and $3 million of payables.Its cost of goods sold is 85% of sales, and it finances workingcapital with bank loans at an 9% rate. Assume 365 days in year foryour calculations. Do not round intermediate steps.
1. What is Parramore's cash conversion cycle (CCC)? Do not roundintermediate calculations. Round your answer to two decimal places.60.12 days
2. If Parramore could lower its inventories and receivables by11% each and increase its payables by 11%, all without affectingsales or cost of goods sold, what would be the new CCC? Do notround intermediate calculations. Round your answer to two decimalplaces. 21.99 days
3. How much cash would be freed up, if Parramore could lower itsinventories and receivables by 11% each and increase its payablesby 11%, all without affecting sales or cost of goods sold? Do notround intermediate calculations. Round your answer to the nearestcent. Write out your answer completely. For Example, 13.2 millionshould be entered as 13,200,000. $ 240003.78
4. By how much would pretax profits change, if Parramore couldlower its inventories and receivables by 11% each and increase itspayables by 11%, all without affecting sales or cost of goods sold?Do not round intermediate calculations. Round your answer to thenearest cent. Write out your answer completely. For Example, 13.2million should be entered as 13,200,000. $ 21600.34

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Answer 1 Cash conversion cycle CCC DSO DIO DPO DSO 365 Sales Average Receivables 365 10000000 4000000 146 days DIO 365 Cost of Goods sold Average Inventory 365 10000000 85 1000000 42941 days DPO See Answer

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Parramore Corp has $10 million of sales, $1 million ofinventories, $4 million of receivables, and $3 million of payables.Its cost of goods sold is 85% of sales, and it finances workingcapital with bank loans at an 9% rate. Assume 365 days in year foryour calculations. Do not round intermediate steps.1. What is Parramore's cash conversion cycle (CCC)? Do not roundintermediate calculations. Round your answer to two decimal places.60.12 days2. If Parramore could lower its inventories and receivables by11% each and increase its payables by 11%, all without affectingsales or cost of goods sold, what would be the new CCC? Do notround intermediate calculations. Round your answer to two decimalplaces. 21.99 days3. How much cash would be freed up, if Parramore could lower itsinventories and receivables by 11% each and increase its payablesby 11%, all without affecting sales or cost of goods sold? Do notround intermediate calculations. Round your answer to the nearestcent. Write out your answer completely. For Example, 13.2 millionshould be entered as 13,200,000. $ 240003.784. By how much would pretax profits change, if Parramore couldlower its inventories and receivables by 11% each and increase itspayables by 11%, all without affecting sales or cost of goods sold?Do not round intermediate calculations. Round your answer to thenearest cent. Write out your answer completely. For Example, 13.2million should be entered as 13,200,000. $ 21600.34