Bright Corporation has $15 million of credit sales, $2 million of inventories, $3 million of receivables, and $1 million of payables. Its cost of goods sold is 80% of sales, and it finances working capital with bank loans at an 8% rate.

Calculate the Brights cash conversion cycle (CCC). [7]

If Bright could lower its inventories and receivables by 10% each and increase its payables by 10%, all without affecting sales or cost of goods sold, calculate the new CCC for the company. [10]

Determine how much cash would be freed up and also compute how would the cash freed up impact pre-tax profits.