Below are presented financial data of BCA company:

Inventories days = 20

Account payable days =15

Planned sales in next year = 1 000 000

EBITDA margin=18%

risk free rate=3%

market risk premium=7%

beta=1,5

before tax cost of debt=4%

tax rate=20% share of debt (debt/(equity+debt) in the capital structure 30%

Receivables turnover days = 30

a) Calculate working capital (it means long term capital which will be involved to finance current assets)

b) Calculate cash conversion cycle and operational cycle

c) Calculate annual costs of working capital financing

d) Calculate Working capital and cost of working capital financing assuming that you are able to reduce inventories days by 6 days and increase account payable days by 5 days