Question: Short Answer Question 3: Table 3 provides the most recent financial values for Firm Z. The CFO wants to implement strategic and operational changes that

 Short Answer Question 3: Table 3 provides the most recent financial

Short Answer Question 3: Table 3 provides the most recent financial values for Firm Z. The CFO wants to implement strategic and operational changes that will lower the firm's DSO to 40 days, DIH to 35 days, and increase DPO to 50 days. Assuming that these changes can be met without reducing revenues or CGS, calculate the resulting increase in operating cash flow due to reducing the CCC. Lastly, discuss any weaknesses in the model assumptions that might result in the projected increase in operating cash flow not materializing. Table 3 Accounts Receivable Inventory Accounts Payable Revenues | CGS Most Recent Values for Firm Z $51 $17 $13 $150 $122 Short Answer Question 3: Table 3 provides the most recent financial values for Firm Z. The CFO wants to implement strategic and operational changes that will lower the firm's DSO to 40 days, DIH to 35 days, and increase DPO to 50 days. Assuming that these changes can be met without reducing revenues or CGS, calculate the resulting increase in operating cash flow due to reducing the CCC. Lastly, discuss any weaknesses in the model assumptions that might result in the projected increase in operating cash flow not materializing. Table 3 Accounts Receivable Inventory Accounts Payable Revenues | CGS Most Recent Values for Firm Z $51 $17 $13 $150 $122

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