2. All questiu QUESTION ONE ries tums over its inventory 6 times each year, it has an average collection period of 45 Garrett Industries days and an average payment period of 30 days ano diference in the investment per shillings of sales in inventory, receivables, and p . The firm's annual sales are Ksh 3 million. Assume there ayables; and a 365- day year Required a. Calculate the firm's cash conversion cycle, its daily cash operating expenditure and the amount of resources needed to support its cash conversion cycle. b. Find the firm's cash conversion cycle and resource investment requirement if it makes the following changes simultaneously. i. Shortens the average age of inventory by 5 days. i. Speeds the collection of accounts receivable by an average of 10 days (3) Extends the average payment period by 10 days. e firm pays 13% for its resource investment, by how much, if anything, could it increase its annual pro c. If the pays d as a result of the changes in part (b)? l the annual cost of achieving the profit in part (c) is Ksh 535,000, what action would you recommend to the firm? Why