Find the net change in cash conversion cycle

Reference no: EM1370414

Gaston Piston Corporation has yearly sales of $50,735,000 and maintains an average inventory level of $15,012,000. The average accounts receivable balance outstanding is $10,008,000. The company makes all purchases on credit and has always paid on the 30th day. The compay is now going to mtake full advantage of trade credit and pay its supplies on the 40th day. If sales can be maintained at existing levels but inventory can be lowered y $1,946,000 and accounts receivable lowered by $1,946,000, what will be the net change in the cash conversion cycle? (Assume there are 365 days in the year.)

Reference no: EM1370414

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