Use the following information for problems $5$ through $6.$

Revenues $=$$$4,200,000$

$CGS=45$ percent of revenues

Receivables $=$$$1,100,000$

Payables $=$$$700,000$

Inventory $=$$$800,000$

Calculate and interpret the operating cycle.

Calculate and interpret the $CCC.$

What DPO is required for the CCC to equal go days?

Building on problem $7,$ suppose that the firm is able to drop DPO to the required level so that the CCC is go days. What would this mean for the level of accounts payable and the WCR $($assuming all else constant$)?$

Awnser $5-8$