Parramore Corp has $11 million of sales, $2 million of inventories, $2 million of receivables, and $2.75 million of payables. Its cost of goods sold is 70% of sales, and it finances working capital with bank loans at a 7% rate. Assume 365 days in year for your calculations. How much cash would be freed up, if Parramore could lower its inventories and receivables by 8% each and increase its payables by 8%, all without affecting sales or cost of goods sold? Write out your answer completely. For Example, 13.2 million should be entered as 13,200,000. Do not round intermediate calculations. Round your answer to the nearest dollar. I keep getting 100,000 and its says its wrong can you show me what I am doing wrong

Parramore Corp has $11 million of sales, $2 million of inventories, $2 million of receivables, and $2.75 million of payables. Its cost of goods sold is 70% of sales, and it finances working capital with bank loans at a 7% rate. Assume 365 days in year for your calculations. How much cash would be freed up, if Parramore could lower its inventories and receivables by 8% each and increase its payables by 8%, all without affecting sales or cost of goods sold? Write out your answer completely. For Example, 13.2 million should be entered as 13,200,000. Do not round intermediate calculations. Round your answer to the nearest dollar. I keep getting 100,000 and its says its wrong can you show me what I am doing wrong

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter22: Providing And Obtaining Credit

Section: Chapter Questions

Problem 2MC

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