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Suppose firm XYZ has AR (Account receivable) = 500, Sales = 3,000, Inventory = 300, Cost of Good Sold = 1,200 and AP (Account payable)

Suppose firm XYZ has AR (Account receivable) = 500, Sales = 3,000, Inventory = 300, Cost of Good Sold = 1,200 and AP (Account payable) = 100.

How much cash does firm XYZ save if it reduces its Days Sales Outstanding by 10 days, increases its Days Payable Outstanding by 10 days, and reduces its Days Sales of Inventory by 10 days?

Briefly, what are specific activities an organization can engage in to accomplish these goals? Explain

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