b. If Lothbrok Industries does decrease its cash conversion cycle by 14 days by increasing average payables and reducing average receivables, what will be the change in its net op working capital? The company's inventory remains constant. (2 Marks) After Before $21 million | A/R Inventory $120 million APP $26 million Change in NOWC = 2019 2020 Lothbrok Industries Ltd. Balance Sheet, (millions CDN) ASSETS Cash And Equivalents Accounts Receivable Inventory Prepaid Exp. Total Current Assets Gross Property, Plant & Equipment Accumulated Depreciation Net Property, Plant & Equipment Other Non-operating Assets Total Assets 21 115 3 140 230 (88.3) 142 50 332 21 120 4 145 244 (86) 158 52 355 26 37 LIABILITIES Accounts Payable Accrued Exp. Short-term Borrowings Other cu nt Liabilities Total Current Liabilities Long-Term Debt Other Non-Current Liabilities Total Liabilities 25 8 27 10 71 76 18 165 14 76 70 29 176 Total Equity Total Liabilities And Equity 167 332 179 355 Lothbrok Industries Ltd. Income Statement (Millions CDN) Revenue Cost Of Goods Sold Gross Profit Selling General & Admin Exp. Depreciation & Amortization. Operating Income Interest Expense Earnings Before Tax Income Tax Expense Net Income 2020 270 154 116 74 11 32 0000OON Per Share Items EPS Common Shares Outstanding (millions) Dividends per Share Payout Ratio % $0.40 44.1 $0.15 36.9%