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1. The industry average DSO is 18 (360-day basis). Collins plans to change its credit policy so as to cause its DSO to equal the industry average, and this change is expected to have no effect on either sales or cost of goods sold. How much cash can the company free up from reducing receivables? (15 points) 2. The industry inventory turnover ratio is 15 . Collins plans to reduce the inventory level to equal the industry average. How much cash can the company free up from reducing inventories? Assume that the sales level \& cost of goods sold will remain constant. (15 points) 3. Which of the following activities does not belong to operating activities? (4 points) a. Change in Account Receivables (A/R) b. Change in Inventories c. Change in Notes Payable (NP) d. Change in Gross Fixed Assets e. Both c and d