Lothbrok Industries Ltd. Income Statement (Millions USD) Revenue Cost Of Goods Sold Gross Profit Selling General & Admin Exp. Depreciation & Amort. Operating Income Interest Expense Earnings Before Tax Income Tax Expense Net Income 2020 270 154 116 74 10 32 6 26 18 Per Share Items EPS Common Shares Outstanding (millions) Dividends per Share Payout Ratio $0.40 44.1 $0.15 36.9% 2019 2020 Lothbrok Industries Ltd. Balance Sheet, (millions USD) ASSETS Cash And Equivalents Accounts Receivable Inventory Prepaid Exp. Total Current Assets Gross Property, Plant & Equipment Accumulated Depreciation Net Property, Plant & Equipment Other Non-operating Assets Total Assets 21 115 4. 140 230 (88) 142 50 332 21 120 4 145 244 (86) 158 52 355 26 25 8 27 LIABILITIES Accounts Payable Accrued Exp. Short-term Borrowings Other Current Liabilities Total Current Liabilities Long-Term Debt Other Non-Current Liabilities Total Liabilities 11 71 76 18 165 37 14 77 70 29 176 Total Equity Total Liabilities And Equity 167 332 179 355 Refer to the relevant 2020 financial information for Lothbrok Industries. Its receivables collection period is 0.47 times the size of its average payables period. The firm's inventory conversion period is 284 days. Its new CFO wants to decrease the cash conversion cycle by 14 days, based on a 365-day year. He believes he can increase average payables by $2.54 million without upsetting suppliers. Question 9 (6 points) By how much must the firm reduce its accounts receivable to meet its goal of an 14-day reduction in its cash conversion cycle