The following question on working capital management has 2 parts:

1. Cromwell Incorporated has the information shown below on its annual Income Statement and Balance Sheet. What is Cromwell's cash conversion cycle (round to the nearest day).

Sales $122,800

Cost of goods sold $104,380

Accounts receivable $10,900

Inventory $1,420

Accounts payable $22,640

2. A firm offers its customers 3/5 net 25. What is the cost of trade credit to a customer who chooses to pay on day 25?

Group of answer choices

A) part 1 = 112 days; part 2 = 65.5%

B) part 1 = -42 days; part 2 = 65.5%

C) part 1 = -42 days; part 2 = 74.3%

D) part 1 = -36 days; part 2 = 32.3%