a. Find the cash conversion cycle for the last 3 years. What (if any) changes in the cash conversion cycle?

b. Based on your days sales outstanding, assume your firm sells on terms of 3/20, net 30 increment. Find the APR and effective rate on the cost of trade credit.

Financial Statement Information Receivables Sales Inventory Payables Cost of Goods Sold 2 years ago 245,000 7,015,000 55,000 378,000 4,815,000 1 year ago 211,000 7,658,000 78,000 437,000 5,582,000 Most recent year 231,000 8,094,000 81,000 401,000 5,884,000 Financial Statement Information Receivables Sales Inventory Payables Cost of Goods Sold 2 years ago 245,000 7,015,000 55,000 378,000 4,815,000 1 year ago 211,000 7,658,000 78,000 437,000 5,582,000 Most recent year 231,000 8,094,000 81,000 401,000 5,884,000