Question 3 Browns manufacturing company pays trade and other payables on the 10th day after purchase. The average collection period is 30 days, the average age of inventory is 40 days. The firm currently has sales of about R18 million. The firm is considering a plan that would stretch its trade and other payables by 20 days. If the firm pays 12% per year for resource investment, what annual savings can it realise by this plan? Assume a 365 - day year (15 Marks)