Below are financials for XYX Corporation (in million $):

Sales	$350		Cash	$ 5		Accounts Payable	$ 63
COGS	270		Accounts Receivable	74		Long term debt	125
SG&A	10		Inventory	40		Common stock	50
EBIT	70		Net fixed assets	239		Retained earnings	120
Interest	10		Total assets	$358		Total Equity & Liab.	$358
EBT	60
Tax	18
Net Income	$ 48

The firm's inventory conversion period is 54 days. Its new CFO wants to decrease the cash conversion cycle by 8 days, based on a 365-day year. He believes he can reduce average receivables by $3.2 million without upsetting customers.

a. By how much must the firm increase its average payable to meet its goal of a 8-day reduction in its cash conversion cycle? (6 points)

b. If XYZ Corporation does decrease its cash conversion cycle by 8 days by increasing average payables and reducing average receivables, what will be the change in its net operating working capital? The company's inventory remains constant. (2 points)