Pasha Corporation produces motorcycle batteries. Pasha turns out $1,100$ batteries a day at a cost of $$4$ per battery for materials and labor. It takes the firm $22$ days

to convert raw materials into a battery. Pasha allows its customers $40$ days in which to pay for the batteries, and the firm generally pays its suppliers in $30$ days.

Assume $365$ days in year for your calculations.

a$.$ What is the length of Pasha's cash conversion cycle? Round your answer to two decimal places.

days

b$.$ At a steady state in which Pasha produces $1,100$ batteries a day, what amount of working capital must it finance? Round your answer to the nearest dollar.

$

c$.$ By what amount could Pasha reduce its working capital financing needs if it was able to stretch its payables deferral period to $49$ days? Round your answer to the

nearest dollar.

$

d$.$ Pasha's management is trying to analyze the effect of a proposed new production process on its working capital investment. The new production process would

allow Pasha to decrease its inventory conversion period to $15$ days and to increase its daily production to $2,100$ batteries. However, the new process would cause

the cost of materials and labor to increase to $$11.$ Assuming the change does not affect the average collection period $(40$ days$)$ or the payables deferral period $(30$

days$),$ what will be the length of its cash conversion cycle and its working capital financing requirement if the new production process is implemented? Round your

answer for cash conversion cycle to two decimal places and for working capital financing to the nearest cent.

Cash conversion cycle

days

Working capital financing