(Related to Checkpoint 18.2) (Calculating the operating and cash conversion cycle) Carraway Seed Company Inc. has for many years cultivated and sold what are known as heritage plants and seeds. For example, the company has sought out older varieties of tomato plants that are no longer grown by commercial vegetable farmers since they either take too long to mature, do not ship well, or do not hold up for long on the store shelf. The company has recently been considering ways to reduce its investment in working capital in order to make itself more profitable. At present the firm has an inventory conversion period of 89 days and the majority of its customers take advantage of its credit terms of 28 days. The company purchases its inventory items on credit terms that allow them 54 days to pay but has always followed a policy of making cash payments for invoices as soon as they are received, so the accounts payable deferral period is typically only 14 days. a. What are Carraway's operating and cash conversion cycles? b. If Carraway were to decide to take full advantage of its credit terms and delay payment until the last possible date, how would this impact their cash conversion cycle? c. What would be your recommendation to the company with regard to its working capital management practices and why? a. Carraway's operating cycle is days. (Round to the nearest whole number.) Carraway's cash conversion cycle is days. (Round to the nearest whole number.) days. (Round b. If Carraway were to decide to take full advantage of its credit terms and delay payment until the last possible date, their cash conversion cycle is to the nearest whole number.) c. What would be your recommendation to the company with regard to its working capital management practices and why? (Select the best choice below.) O A. Carraway should take its suppliers' offer to finance its sales with an extended payment period. O B. Carraway should pay its suppliers sooner to shorten the operating cycle. O C. Carraway should pay its suppliers sooner to avoid interest charges on any delayed payments. OD. Carraway should take its suppliers' offer to finance its inventory with the interest-free 40-day loan