Question: PLEASE ANSWER. THANK YOU! Problem 3 - Cash Conversion Cycle Cast Away Fishing Products is analyzing the performance of its cash management. On average, the

PLEASE ANSWER. THANK YOU!

Problem 3 - Cash Conversion Cycle

Cast Away Fishing Products is analyzing the performance of its cash management. On average, the firm holds inventory 65 days, pays its suppliers in 35 days, and collects its receivables in 15 days. The firm has a current annual outlay of $1,960,000 on operating cycle investments. They currently pay 10 percent for financing. (Assume a 365 day year.)

(a) Calculate the firm's cash conversion cycle.

(b) Calculate the firm's operating cycle.

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