Case BackgroundTechnoFix Corporation, now a major player in the electronics manufacturing industry, has continued to grow since its inception in 2018. The company now operates in four countries, each with unique sales, inventory, accounts receivable, and accounts payable characteristics. You are the CFO of TechnoFix and are eager to improve the company's working capital efficiency to ensure sustainable growth and stability.Here is the financial data for 20XX, by country:United StatesCurrent Assets: 12,000,000(Cash: 1,500,000; Accounts Receivables: 5,000,000; Inventories: 5,500,000)Current Liabilities: 7,000,000(Accounts Payable: 4,000,000; Short Term Debts: 3,000,000)Cost of Goods Sold (COGS): 22,000,000Net Credit Sales: 35,000,000Purchases: 20,000,000Average payment period (APP): 20 daysAverage collection period (ACP): 40 daysChinaCurrent Assets: 6,000,000(Cash: 600,000; Accounts Receivables: 2,000,000; Inventories: 3,400,000)Current Liabilities: 3,000,000(Accounts Payable: 2,000,000; Short Term Debts: 1,000,000)COGS: 12,000,000Net Credit Sales: 18,000,000Purchases: 11,000,000APP: 30 daysACP: 35 daysGermanyCurrent Assets: 4,500,000(Cash: 500,000; Accounts Receivables: 2,500,000; Inventories: 1,500,000)Current Liabilities: 3,500,000(Accounts Payable: 2,500,000; Short Term Debts: 1,000,000)COGS: 8,000,000Net Credit Sales: 12,000,000Purchases: 7,000,000APP: 15 daysACP: 20 daysJapanCurrent Assets: 2,500,000(Cash: 400,000; Accounts Receivables: 500,000; Inventories: 1,600,000)Current Liabilities: 1,500,000(Accounts Payable: 1,000,000; Short Term Debts: 500,000)COGS: 3,000,000Net Credit Sales: 5,000,000Purchases: 2,000,000ResultedAPP: 10 daysACP: 15 daysAssignmentBased on the information provided in the scenario detailed above, please download the Working Capital Management Template and use it to prepare a report detailing your calculations, the operation you think needs the most improvement in working capital management, and your specific recommendations for improving the working capital management of that operation. This assignment should take approximately 1 hour to complete.Calculate the working capital for each country's operation. Which operation has the highest working capital, and what does it suggest?Calculate the Current Ratio and Quick Ratio for each operation. What insights do these ratios provide about the liquidity position of each operation?Calculate the Inventory Turnover Ratio and Days in Inventory for each operation. What do these values indicate about the inventory management of each operation?Calculate the Receivables Turnover Ratio and Days Sales Outstanding for each operation. What do these ratios suggest about the management of accounts receivable in each operation?Calculate the Payables Turnover Ratio and Days Payable Outstanding for each operation. What do these ratios reveal about the management of accounts payable in each operation?Calculate the Cash Conversion Cycle (CCC) for each operation. What does this suggest about the working capital cycle in each operation?Based on your findings, which operation needs the most improvement in working capital management? What specific recommendations would you suggest to improve the working capital management of that operation?