FIN3702/1 Question 10 Dr. Kalan Medical Ltd has annual sales of R36 500 000 (R100 000 a day on a 365- day basis). On average the firm has R12 000 000 in inventory and R8 000 000 in accounts receivable. The firm is looking for new ways 365 day year. The Chief Financial Officer has proposed policies that would result in a 20% reduction in both average inventories and accounts receivable. These policies will also reduce sales by 10%. However, accounts payable will remain unchanged. What effect would these policies have on the company's cash conversion cycle (CCC)? Round off days to the nearest whole number. to reduce their CCC using the 1. -13 days. 2. +22 days. 3. -22 days. 4. +40 days