Whitson Co

Whitson Co.is looking for ways to shorten its cash conversion cycle.It has annual sales of $36, 500, 000, or $100, 000 a day on a 365-day basis.The firm's cost of goods sold is 75% of sales.On average, the company has $9, 000, 000 in inventory and $8, 000, 000 in accounts receivable.Its CFO has proposed new policies that would result in a 20% reduction in both average inventories and accounts receivable.She also anticipates that these policies would reduce sales by 10%, while the payables deferral period would remain unchanged at 35 days.What effect would these policies have on the company's cash conversion cycle? Round to the nearest whole day.

A) -26 days
B) -22 days
C) -18 days
D) -14 days
E) -11 days