Multiple changes in cash conversion cycle - Garrett Industries turns over its inventory 5 times each​ year; it has an a

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Multiple changes in cash conversion cycle -  Garrett Industries
turns over its inventory 5 times each​ year; it has
an average collection period of 40 days and an average
payment period of 28 days. The​ firm's annual sales
are $3.4 million. Assume there is no difference in the
investment per dollar of sales in​ inventory, receivables,
and​ payables; and a 365​-day year.
a. Calculate the​ firm's cash
conversion cycle​, its daily cash
operating​ expenditure, and the amount of resources needed to
support its cash conversion cycle.
b.  Find the​ firm's cash conversion cycle and resource
investment requirement if it makes the following changes
simultaneously.
​(1) Shortens the average age of inventory
by 5 days.
​(2) Speeds the collection of accounts receivable by an average
of 8 days.
​(3) Extends the average payment period by 8 days.
c.  If the firm pays 16​% for its
resource​ investment, by how​ much, if​ anything,
could it increase its annual profit as a result of the changes in
part b​?
d.  If the annual cost of achieving the profit in part c is
​$36,000​, what action would you recommend to
the​ firm? ​ Why?