QUESTION 4 ABC Manufacturing Co. makes 2,500 automobile batteries/day, at a cost of $8/battery for materials and labour. It takes 25 days to convert raw materials into a battery. The firm gives its customers 30 days credit, and pays its suppliers in 35 days. (i) If it produces 2,500 batteries/day, how much working capital must it finance? (ii) If its payables deferral period was extended to 40 days, by how much could it reduce the working capital financing requirements?