Southern Manufacturing is doing some short -term financial planning because theyd like to lower their short -term borrowing costs . a. Calculate the length of the cash conversion cycle for a firm with $50,000 in average inventory, $ 60,000 in average receivables, $30,000 in average payables, annual sales of $ 900,000, and an annual cost of goods sold of 70% of sales. (4 marks) b. What strategies could Southern undertake to improve their cash conversion cycle (2 marks)

Question 19 (6 points) Southern Manufacturing is doing some short-term financial planning because they'd like to lower their short-term borrowing costs. a. Calculate the length of the cash conversion cycle for a firm with $50,000 in average inventory, $60,000 in average receivables, $30,000 in average payables, annual sales of $900,000, and an annual cost of goods sold of 70% of sales. (4 marks) b. What strategies could Southern undertake to improve their cash conversion cycle 12 marks)