Last year, a firm had a DSO of 35 days and annual revenues $10,000,000. The treasury department has made it a goal to reduce the DSO to 30 days, while holding constant revenues. If this reduction is realized then calculate the following.

a) Past years recievables, the forecasted level of next years recievables, and the expected change in recievables.

b) The previous years and upcoming years operating cycle and CCC, given that next years DIH and DPO are expected to equal 45 days and 75 days, respectivily.