Question: Data on Shin Inc. for 2008 are shown below, along with the inventory conversion period (ICP) of the firms against which it benchmarks. The firm's

Data on Shin Inc. for 2008 are shown below, along with the inventory conversion period (ICP) of the firms against which it benchmarks. The firm's new CFO believes that the company could reduce its inventory enough to reduce its ICP to the benchmarks average. If this were done, by how much would inventories decline? Use a 365-day year. (Please show all formulas)

Cost of goods sold = $85,000

Inventory = $20,000

Inventory conversion period (ICP) = 85.88

Benchmark inventory conversion period (ICP) = 38.00

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