Proper maragement of a firm's working capital is vital and challenging due to the between a fimm's cash inflows and outlaws. Afirm's begins with purchase of the firm's raw materials and ends with collection of the customer's cash from the credit sale of the firm's finished good, can be broken down into several elements Induding the amount of time needed to obtain and transform the firm's inventortes into a ble products and then them to the firm's customers, which is called the time period that begins with the sale of the firm's product to credit customer and ends with the collection of the customer's as which is the Not that in the first paried begins with the creation of a court payable, while the second begins with the creation of a court robe. The large of me that the company is able to postpone payment for credit purchase of materials van acourt payable is called . This is the third important component of a firm's operating syde. From the perspective of the purchaser, the count payable is a spontaneous of financing, while the count receivable is a spontaneous investment made in its customer. In general, a fim is required to pay its account payable, cash outflow, before trees the cash flow from the collection of its acount recevable. The firm, therdon, requires a sport s of financing to cover this period. This period, which responds to the interval beginning with the payment of the count payable and ending with the collection of the account receivable, is called the The refers to the interval beginning with the payment of the account payable and ending with the collection of the account receivable. The relationship between a fimm's payables deferral period (P). receivables co n parlad(R. and inventory co o n parlad (1) is best represented mathematically as: OI-RP ORP O R )-p Consider this data for Florenen Fashion Footwear (FFF) and use to complete the table Selected Financial Data for Florence Fashion Footwear Inc. (FFF) Average cash $25,562 Average courts payable $600.000 AVETAGE unts receivable $637 00 Average inventories $318,750 Av a sh sales $2.125.000 Avengersales $6.375.000 Average cost of goods said $3.825.000 Average Bumber of days per year Error Consion period Payable de parid Receivables conversion period Operating tyde Casho oneyde