1.Parlow Packaging currently has $ 35,750 in cash, $ 47,000 in accounts receivable, $ 66,000 in inventories, $ 13,000 in accrued liabilities, $ 72,000 in accounts payable on its balance sheet. The firm’s production manager has determined that the cost of good sold accounts for 80 percent of sales revenue it produces. Furthermore, the firm has determined that the length of the firm’s cash conversion cules is 16.79 days.a. What is Parlows annual salesb. The firm’s production manager has determined that through negotiation with its suppliers, the firm could reduce the ratio of cost of goods sold to sales down to 70%, and thus reduce its cash conversion cycle. However, the firm would then take this opportunity to use cash to reduce its accounts payable. The firm realizes that reducing accounts payable increases the cash conversion cycle time, but it is more concerned with pleasing its creditors, who are unhappy with the firm’s liquidity position. None of these changes is expected to have impact upon sales. If the firm reduces accounts payable enough to improve the current ratio to 2.0 what would be the length of the firm’s cash conversion cycle?2.If a firm buys on terms of 3/15, net 45, what is the APR of its non-free trade credit? What is the effective annual rate,rEAR?3. Connecticut Advanced Technologies (CAT) is planning to get a 30-day P 150,000 simple interest loan from its bank. The quoted interest rate on the loan is 10 percent. Calculte the APR andrEARassuming the loan (a) has not compensating balance requirement and (b) has a 20 percent compensating balance requirement and CAT currently hold no funds at the lending bank.4. Xenon X-rays (XX) recently issued a 180-day commercial paper with a face value of P 100,000 and a simple interest rate of 7 percent. XX paid a transaction fee equal to 0.3 percent of the issue, which was taken out of the issue amount before the company received any fund. Compute the commercial paper APR andrEAR?