Cash management is a very important function of managers. Companies need to manage their operations in a way that they can sustain growth and yet not run out of cash. Consider the following case: Galaxy Corp. has forecasted sales of $27.0 million for next year and expects its cost of goods sold (COGS) to remain at 60% of sales. Currently, the firm holds $3.1 million in inventories, $2.2 million in accounts receivable, and $2.8 million in accounts payable. Approximately how long does it currently take Galaxy Corp. to convert raw materials to its finished products and then to sell them? ( Use 365 days as the length of a year in all calculations.) 62.87 days 69.85 days 76.84 days 52.39 days On average, how long does it take from the time a sale is made until the time cash is collected from customers? Galaxy Corp. relies on customer credit when it buys raw materials from its suppliers. How long does it take after the firm purchases materials before it sends cash to its suppliers? What is the length of Galaxy Corp/s cash conversion cycle (CCC)? The management at Galaxy Corp. wants to continue its internal discussions related to its cash management. One of the finance team members presents the following case to her cohorts: Which of the following responses to the CFO's statement is most accurate? Fitcom Corp.'s management plans to finance its operations with bank loans that will be repaid as soon as cash is available. The company's management expects that it will take 50 days to manufacture and sell its products and 40 days to receive payment from its customers. Fitcom Corp.'s CFO has told the rest of the management team that they should expect the length of the bank loans to be approximately 90 days. The CFO is not taking into account the amount of time the company has to pay its suppliers. Generally, there is a certain length of time between the purchase of materials and labor and the payment of cash for them. The CFO can reduce the estimated length of the bank loan by this amount of time. The CFO's approximation of the length of the bank loans should be accurate, because it will take 90 days for the company to manufacture, sell, and collect cash for its goods. All these things must occur for the company to be able to repay its loans from the bank. Is it possible for a firm to have a negative CCC