P14-1 (similar to) Question Help fome Cash conversion cycle American Products is concerned about managing cash efficiently. On the average, inventories have an age of 77 days, and accounts receivable are collected in 40 days. Accounts payable are paid approximately 32 days after they arise. The firm has annual sales of about $40 million Cost of goods sold are $18 million, and purchases are $14 million ents a. Calculate the firm's operating cycle b. Calculate the firm's cash conversion cycle c. Calculate the amount of resources needed to support the firm's cash conversion cycle. d. Discuss how management might be able to reduce the cash conversion cycle. an a. American Products operating cycle, OC is 117 days (Round to the nearest whole number.) b. American Products' cash conversion cycle, CCC, is 85 days. (Round to the nearest whole number) meText . The amount of resources that must be invested to support American Products' CCC is (Round to the nearest dollar) edia Libra lal Calcula Enter your answer in the answer box and then click Check Answer. er Resource 1 part Clear All remaining Check Awer nie Study unication Tools