Parramore Corp has$$16$ million of sales, $$1$ million of

inventories, $$3\mathrm{.}25$ million of receivables, and $$2\mathrm{.}25$ million of

payables. Its cost of goods sold is $85\%$ of sales, and it finances

working capital with bank loans at an $6\%$ rate. What is Parramore$$s

cash conversion cycle $($CCC$)?$ If Parramore coulD

lower its inventories and receivables by $12\%$ each

and increase its payables by $12\%,$ all without affecting sales or

cost of goods sold, what would be the new CCC$,$ how much cash would

be freed up$,$ and how would that affect pretax profits?$$