QUESTION 6: Chang Lun Products has average inventory balance of $1,000,000. Its estimated annual sales are $10 million and the firm estimates its receivables conversion period to be twice as long as its inventory conversion period. The firm pays its trade credit on time; its tems are net 30 days. The firm wants to decrease its cash conversion cyele by 20 days. It believes that it can reduce its average inventory to 860,000 Assume a 365-day year and that sales will not change and cost of goods sold is 70% of sales. By how much must the firm also reduce its accounts receivable balance to meet its goal of a 20-day reduction in its cash conversion cycle? Total: 10 marks]