The Butler-Huron Company€™s balance sheet and income statement for last year are as follows:

*Assume that all sales are credit sales and that average accounts receivable are the same as ending accounts receivable.
**Assume that average inventory over the year was the same as ending inventory.
***Assume that average accounts payable are the same as ending accounts payable.
Income Statement (in Millions of Dollars)
Net sales ................. $13,644
Cost of sales ............... 9,890
Selling, general, and administrative expenses .. 2,264
Other expenses .............. 812
Total expenses .............. $12,966
Earnings before taxes ............ 678
Taxes .................... 268
Earnings after taxes (net income) ........ $410
a. Determine Butler-Huron€™s cash conversion cycle.
b. Determine Butler-Huron€™s cash conversion cycle assuming that 75 percent of annual sales are credit sales (i.e., 25 percent represent cash sales).
c. Determine Butler-Huron€™s cash conversion cycle assuming that 50 percent of annual sales are creditsales.

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Balance Sheet (in Millions of Dollars) Assets Cash and marketable securities 103 Accounts payable Accounts receivable Inventories Other current assetS lotal current assets Plant and equipment (net 3,523 Long-term debt and other Other assets Total assets Liabilities and Equity $1.166 1,138 Accrued liabilities 827 (salaries and benefits) 39 Other current liabilitie 536 493 $2.195 $3.107 Total current liabilities 54 liabilities $6684 Common stock 2.736 105 1648 Total stockholders' equity S153 Total liabilities and equity $6684 Retained earnings