Rosanna Corp. has P15million of sales; P2million of inventories; P3million of receivables and P1million of payable. Its cost of sales is 80% of sales, and it finances working capital with bank loans at an 8%rate.

a. What is Rosannas cash conversion cycle?

b. If Rosanna could lower its inventories and receivables by 10% each, and increase its payable by 10%, all without affecting sales or cost of sales, what would be the new Cash conversion cycle

c. Following letter b above, how much cash would be freed up?