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Parramore Corp has $11 million of sales, $2 million ofinventories, $2 million of receivables, and $1 million of payables.Its cost of goods sold is 65% of sales, and it finances workingcapital with bank loans at an 8% rate. Assume 365 days in year foryour calculations. Do not round intermediate steps.How much cash would be freed up, if Parramore couldlower its inventories and receivables by 9% each andincrease its payables by 9%, all without affecting sales or cost ofgoods sold? Do not round intermediate calculations. Round youranswer to the nearest cent. Write out your answer completely. ForExample, 13.2 million should be entered as 13,200,000.$Â Â By how much would pretax profits change, if Parramore couldlower its inventories and receivables by 9% each andincrease its payables by 9%, all without affecting sales or cost ofgoods sold? Do not round intermediate calculations. Round youranswer to the nearest cent. Write out your answer completely. ForExample, 13.2 million should be entered as 13,200,000.$Â Â Â