A A B E F G H J 1 2 3 Find reduction in WC 4 5 6 New (Target) old (Actual) 50.4 7 40 8 133.5 35 Inventory conversion period (ICP, days) Average collection period (ACP, days) Payable deferral period (PDP, days) Cash Collection Cycle (CCC, days) 9 -41.4 -50.0 10 142.5 25 11 12 13 w m 14 $1,216.70 $1,216.70 15 $1,013.90 $1,013.90 16 Effects of the CCC Reduction Annual sales Costs of goods sold (COGS) Inventory Receivables Payables Net operating WC $140.00 17 $445.00 18 -$115.0 19 $470.00 20 21