Question 3: Edison Inc. has annual sales of $36,500,000, or $100.000 a day on a 365-day basis. The firm's cost of goods sold is 75% of sales. On average, the company has $9,000,000 in inventory, $8,000,000 in accounts receivable and 262,5000 in accounts payable. The firm is looking for ways to shorten its cash conversion cycle. Its CFO has proposed new policies that would result in a 20% reduction in both average inventories and accounts receivable, while the payables deferral period would remain unchanged. What effect would these policies have on the company's cash conversion cycle? Round to the nearest whole day. If Edison finances its working capital through a bank loan costing 8% per annum, how much increase in the pre-tax profit is expected with the proposed change