Multiple changes in cash conversion cycleGarrett Industries turns over its inventory 6 times each year; it has an average collection period of 42 days and an average payment period of 32 days. The firm's annual sales are $3.1 million. Assume there is no difference in the investment per dollar of sales in inventory, receivables, and payables; and a 365-day year.

b.Find the firm's cash conversion cycle and resource investment requirement if it makes the following changes simultaneously.

(1) Shortens the average age of inventory by 5 days.

2) Speeds the collection of accounts receivable by an average of 12 days.

(3) Extends the average payment period by 9 days.

c.If the firm pays 16% for its resource investment, by how much, if anything, could it increase its annual profit as a result of the changes in part b?

d.If the annual cost of achieving the profit in part c is $33,000, what action would you recommend to the firm? Why?