Case 7: Working Capital Management 1 . Aztec Products wishes to evaluate its cash conversion cycle [CCC). Research by one of the firm's financial analysts indicates that on average the firm holds items in inventory for 65 days. pays its suppliers 35 days after purchase, and collects its receivables after 55 days. The rm's annual sales [all on credit) are about $2.1 billion, its cost of goods sold represent about 67 percent of sales, and purchases represent about 40 percent of cost of goods sold. Assume a 365-day year. What is the operating cycle? what is the cash conversion cycle? How many dollars of resources does Aztec have invested in [l] inventory, [2] accounts receivable. [3] accounts payable. and (4} the total CCC? d. Which of the following would be the best decision. reduce the inventory holding period by 5 days, reduce the receivable collection period by 5 days, or extend the accounts payable period by 5 days? Why? or