malfurion Inc. had the following data . The new CFO believes (1) that an improved inventory management system could lower the average inventory by 4,000,000, (2) that improvements in the credit department could reduce receivables by 2,000,000, and (3) that the purchasing department could negotiate better credit terms and thereby increase accounts payable by 2,000,000. Furthermore, she thinks that these changes would not affect either sales or the costs of goods sold. If these changes were made, by how many days would the cash conversion cycle be lowered? assume that the company carries no inventory.

Accounts original revised

Annual sales 110,000 ,000 110,000,000

Annual Cost of goods sold 80,000,000 80,000,000

Average inventory 20,000,000 16,000,000

Average receivables 16,000,000 14,000,000

Average payables 10,000,000 12,000 ,000