Question: I am stuck on 2, 3, and 4. Help is much needed and appreciated. Parramore Corp has $10 milbon of sales, $3 million of inventories,

I am stuck on 2, 3, and 4. Help is much needed and appreciated. I am stuck on 2, 3, and 4. Help is much needed

Parramore Corp has $10 milbon of sales, $3 million of inventories, $3.25 million of receivables, and $2 million of payables. Its cost of goods sold is 75% of sales, and it finances working capital with bank loans at an 8% rote: Assume 365 days in year for your calculations. 1. What is Parramore's cash conversion cycle (COC)?-Do not round intermediate calculations; Round your answer to two decimal places. days 2. If Parramore could lower its inventories and recervables by 7% each and increase its payables by 7%, all without affecting sales or cost of goods sold, whiat woul be the new CCC? Do not round intermediate calculations. Round your answer to two decimal places. days 3. How much cash would be freed up, if Parramore could fower its inventories and receivables by 7% each and increase its payables by 7%, all without affecting sales or cost of goods sold? Write out your answer completely. For Example, 13.2 million should bet entered as 13,200,000. Do not round intermediate calcislations. Round your answer to the nearest dollar. s. 4. By how much would pretax profits change, if Parramore could lower its inventories and receivables by 7% each and increase its piyables by 7%, all without. affecting sales of cost of goods sold? Write out your answer completely, for Cxample, 13.2 mallion should be entered as 13,200,000, Do not round intermediate calculations. Round your answer to the nearest dollar. 5

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