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Westley Company currently has an average age of accounts receivable is 50 days, the average age of accounts payable is 41 days, and the average
Westley Company currently has an average age of accounts receivable is 50 days, the average age of accounts payable is 41 days, and the average age of inventory is 72 days. IF the cost of the good sold per day is $50,000/day, what will be the total increase in Free Cash Flow for next year if next year Westley anticipates its payables will be 45 days and its average age of inventory will be 70 days? Assume its average age of receivables remains at 50 days.
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