Jordan Air Inc has average inventory of 1000000 Its estimate

Jordan Air Inc. has average inventory of $1,000,000. Its estimated annual sales are 15 million and the firm estimates its receivables collection period to be twice as long as its inventory conversion period. The firm pays its trade credit on time; its terms are net 30. The firm wants to decrease its cash conversion cycle by 10 days. It believes that it can reduce its average inventory to $900,000. Assume a 360-day year and that sales will not change. Cost of goods sold equal 80 percent of sales. By how much must the firm also reduce its accounts receivable to meet its goal of a 10-day reduction Ventura Corp. has annual sales of $50,735,000.00, an average inventory level of $15,012,000.00 and average accounts receivable of $10,008,000.00. The firm\'s cost of goods sold is 85% of sales. The company makes all purchases on credit and has always paid on the 30th day. However, it now plans to take full advantage of trade credit and to pay its suppliers on the 40th day. The CFO also believes that sales can be maintained at the existing level but inventory can be lowered by $1,950,000.00 and accounts receivable by $1,900,000.00. What will be the net change in the cash conversion cycle, assuming a 365day year

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