For the Company ABC,

(1) if Sales = $15,000,000; Inventory = $2,000,000; A/R = $3,000,000; A/P = $1,000,000; COGS = 0.8(Sales); Interest on bank loan = 8%; CCC (Cash Conversion Cycle) =?

(2) Given the data above in (1), if lower inventories and receivables by 10% each and increase payables by 10%. Sales and COGS remain the same. What is the new CCC?

(3) How much will cash be freed up comparing (2) with (1) :