The ACME Toy Company has the following information:

1. Inventory conversion of 130 days.

2. Credit terms to its customers of 30 days.

3. Purchase terms of 35 days.

4. ACME's annual purchases are $1,000,000.00

a. Calculate the operating and cash conversion cycles for ACME. show working in excel

b. If ACME extended its purchase terms to 45 and 60 days, how much would it save, assuming a 5% interest rate.show working in excel