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accounts payable showed that its average payment period is 30 days. Leal consulted industry data and found that the industry average payment period was 39 days. Investigation of six California furniture manufacturers revealed that their average payment period was also 39- days. Next, Leal studied the production cycle and inventory policies. Casa de Diseno tries not to hold any more inventory than necessary in either raw materials or finished goods. The average inventory age was 110 days. Leal determined that the industry standard, as reported in a survey done by Furniture Age, the trade association journal, was 83 days. Casa de Diseno sells to all of its customers on a net-60 basis, in line with the industry trend to grant such credit terms on specialty furniture. Leal discovered, by aging the accounts receivable, that the average collection period for the firm was 75 days. Investigation of the trade association’s and California manufacturers’ averages showed that the same collection period existed where net-60 credit terms were given. Where cash discounts were offered, the collection period was significantly shortened. Leal believed that if Casa de Diseno were to offer credit terms of 3/10 net 60, the average collection period could be reduced by 40 percent. Casa de Diseno was spending an estimated $26,500,000 per year on operating-cycle investments. Leal considered this expenditure level to be the minimum she could expect the firm to disburse during 2012. Her concern was whether the firm’s cash management was as efficient as it could be. She knew that the company paid 15 percent annual interest for its resource investment. For this reason, she was concerned about the financing cost resulting from any inefficiencies in the management of Casa de Diseno’s cash conversion cycle. (Note: Assume a 365-day year and that the operating –cycle investment per dollar of payables, inventory, and receivables is the same.) To Do A. Assuming a constant rate for purchases, production, and sale throughout the year, what are Casa de Diseno’s existing operating cycle (OC), cash conversion cycle(CCC), and resource investment need? B. If Leal can optimize Casa de Diseno’s operating cycle (OC), cash conversion cycle (CCC), and resource investment need to be under these more efficient condition? C. In terms of resource investment requirements, what is the cost of Casa de Diseno’s Operational inefficiency? D. (1) If in addition to achieving industry