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Table 3 provides the most recent financial values for Firm Z.The CFO wants to implement strategic and operational changes thatwill lower the firm’s DSO to 40 days, DIH to 35 days, and increaseDPO to 50 days. Assuming that these changes can be met withoutreducing revenues or CGS, calculate the resulting increase inoperating cash flow due to reducing the CCC. Lastly, discuss anyweaknesses in the model assumptions that might result in theprojected increase in operating cash flow not materializing.Table 3Most Recent Values for Firm ZAccounts Receivable$51Inventory$17Accounts Payable$13Revenues$150CGS$122
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