American Products is concerned about managing cash efficiently. On the average, inventories have an age of 84 Days, and accounts receivable are collected in 46 days. Accounts payable are paid approximately 29 days after they aise. The firm has annual sales of about $34 million. Cost of goods sold are $18 million, and purchases are $14 million.

a.Calculate the firm's operating

cycle.

b.Calculate the firm's cash conversion

cycle.

c.Calculate the amount of resources needed to support the firm's cash conversion cycle.

d.Discuss how management might be able to reduce the cash conversion cycle.