Explain the role of finance in business. · Describe the nature of short-term financial management. · Analyze the impact of accounts receivable collection on working capital cycle.

You are to assume the role of a financial analyst at BOSTON FLOWERS. The controller (judge) wants to know how changes to accounts receivable collections may impact the company's working capital cycle. The controller (judge) wants to know the current number of days for the company's working capital cycle. The company's current financial data: - Sales on Credit: $120,000 per month - Average Collection Period: 45 days - Current Accounts Receivable: $180,000 - Cost of Goods Sold (COGS): $80,000 per month - Average Monthly Inventory: $100,000 - Accounts Payable Period: 30 days You will need to calculate the following ratios to obtain the current working capital cycle days: - Days Inventory Outstanding (DIO) - Days Sales Outstanding (DSO) - Days Payable Outstanding (DPO) - Cash Conversion Cycle (CCC, also known as working capital cycle in days) The current average collection period is 45 days. The controller (judge) wants to know how the working capital cycle would change if the average collection period were reduced to 30 days. You will provide the information to the controller (judge) in a role-play to take place in the controller's (judge's) office. The controller (judge) will begin the role-play by greeting you and asking to hear the information. After you have presented the information and have answered the controller's (judge's) questions, the controller (judge) will conclude the role-play by thanking you for your work.