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*SIDE NOTE: EXPLAIN YOUR CALCULATION IN DETAIL, THANKS* Company Green has a turnover of 15,000,000 dollars. The supplier credit period is on average 28 days.

*SIDE NOTE: EXPLAIN YOUR CALCULATION IN DETAIL, THANKS*

Company Green has a turnover of 15,000,000 dollars. The supplier credit period is on average 28 days. The annual purchases of goods, etc. amounts to 9,000,000 dollars. Accounts receivable amount to 1,250,000 dollars in average. Cash and cash equivalents account for 6% of sales. The inventory averages 1,500,000 dollars. The management's goal is to reduce the working capital requirement by 250,000. Finance department believes that the goal can be achieved by reducing the inventory to an average of 1,400,000, to extend it average supplier credit period by two days and to shorten the average customer credit period with 3 days. Is it true?

the course i am studying is finance and investment!

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