Given the following information, how will you finance the working capital requirements? Explain.

REIGN Company, a producer of paper toys, has annual sales of P10 million, cost of goods sold of 75% of sales, and purchases of 65% of cost of goods sold. REIGN Company has an average age of inventory of 60 days, an average collection period of 40 days, and an average payment period of 35 days. Assuming a 360-day year, determine REIGN Companys investment in working capital. If REIGN Company can reduce the average collection period by 5 days, how much will be the reduction in the resources invested?