G 2 P15-2 Changing cash conversion cycle The Furniture Corporation has an inventory turnover of 7, an average collection period of 45 days, and an average payment period of 30 days. Annual sales are $5 million, while the cost of goods sold is $1.8 million. a. What is The Furniture Corporation's operating cycle and cash conversion cycle? b. Calculate the dollar value of inventory that would appear on the balance sheet at year end. c. Suppose The Furniture Corporation found a way to improve its inventory turn- over from 7 to 10. What is the effect of this improvement on the working capital of the firm? G 2 P15-3 Multiple changes in cash conversion cycle Garrett Industries turns over its inventory six times each year; it has an average collection period of 45 days and an average payment period of 30 days. The firm's annual sales are $3 million. Assume that there is no difference in the investment per dollar of sales in inventory, receivables, and payables, and assume a 365-day year