3.1 CCC = Days of Sales Outstanding + Days of Inventory Outstanding – Days of Payables Outstanding
CCC = DSO + DIO – DPO
CCC = 65 + 35 – 55 = 45
3.2 In this case, it would be better to extend the accounts payable period. It is because this is not only a way of motivating the company's employees, but it is also a manner of freeing up more of the firm's cash flow.
3.3 The company should reduce days sales outstanding and inventory outstanding and at the same time increasing the days of payable outstanding.