Working Reduction in costof financing working capital $ Current average account receivable Revised average account receivable One-off cash flow improvement Annual saving thereon at 15% 7. A Co has the following forecasting information for the Jan 2020 - Sale value in Jan 2020 = $2M - Admin Expense = 51M - Interest income = $30K - Account receivable collection = $1.5M - Bad debts=2% of sale value. - Cash on Hand at the end of 31 December 2019=$3K - Cash at Bank at the end of 31 December 2019= $300K - Account payable due in Jan 2020 = $2M Other information 1. 50% of sale value will be on credit and due in 30 days after the date 2- 30% of the cash at bank represents a fixed deposit. Required Use the above information to prepare cash flow statement for Jan 20 Advise the A co management whether it will face any cash problem suggestion that you will make to face the cash flow problems