Assume that you are the CEO of a small publicly traded company. The operating performance of your company has fallen below market expectations, which is reflected in a depressed stock price. At your direction, your CFO provides you with the following recommendations that are designed to increase your company’s return on net operating assets (RNOA) and your operating cash flows, both of which will presumably, result improved financial performance and an increased stock price. 1.To improve net cash flow from operating activities, the CFO recommends that your company reduce inventories (raw material, work-in-progress and finished goods) and receivables (through selective credit granting and increased emphasis on collection of past due accounts).2.The CFO recommends that your company lengthen the time taken to pay accounts payable (lean on the trade) to increase net cash flows from operating activities. 3.Because your company’s operating performance is already depressed, the CFO reco