Suppose your startup has $9.00 million in sales, $2.00 million of inventories, $5.00 million of receivables, and $2.45 million of payables. Your cost of goods sold is 75% of sales, and you borrow funds to finance your operations at 8%. What is the formula for the cash conversion cycle? Cash conversion cycle = Inventory conversion period Average collection period Payables deferral period Identify how each period is estimated. Complete the following table by computing all periods and the cash conversion cycle. Complete the following table by computing all periods and the cash conversion cycle. r inventories and receivables by 5% and Complete the following table by computing all periods and the cash conversion cycle. Ir inventories and receivables by 5% and at the same time increase payables by 5% w inventories and receivables by 5% and at the same time increase payables by 5% wi Suppose now that you were able to lower your inventories and receivables by 5% and at the same time increase payables by 5% without changing your sales and costs. Suppose now that you were able to lower your inventories and receivables by 5% and at the same time increase payables by 5% without changing your sales and costs. The firm's cash conversion cycle became days. You were able to free up in cash and your pre-tax profits will by Step 3: Practice: Cash Conversion Cycle Now it's time for you to practice what you've learned. increase Suppose now that you were able to lower your inventories and receivables by 5% and at the same time increase payables by 5% without changing your sales and costs. The firm's cash conversion cyde became days. You were able to free up in cash and your pre-tax profits will by Suppose now that you were able to lower your inventories and receivables by 5% and at the same time increase payables by 5% without changing your sales and costs. The firm's cash conversion cycle became days. You were able to free up in cash and your pre-tax profits will by Step 3: Practice: Cash ycle Now it's time for you to you've learned. Suppose your startup ha n in sales, $2.00 million of inventories, $5.00 million of receivables, and $2.45 million of payables. Your cost of goods sold is 75% of : borrow funds to finance your operations at 8%