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7. On average, It takes XYZ Company 60 days to sell its inventory, 40 days to collect it's accounts receivables and it pays its suppliers
7. On average, It takes XYZ Company 60 days to sell its inventory, 40 days to collect it's accounts receivables and it pays its suppliers in 40 days. What is it's cash gap? 8. The same company in question \#7 has annual revenue of $100,000mln and a gross profit margin of 25%. How much does it need to borrow to finance its cash conversion cycle (synonym for cash gap)? 9. If the interest rate on XYZ's line of credit is 6%, how much does it cost it to finance its net working capital (synonym for financing needed to fund its cash gap)? If the company were to decrease it's cash conversion cycle by five days, how much would it save
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