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bigwill_29
Mar 2, 2011, 02:25 PM
What effect will the following events have on the cash conversion cycle?

a. Higher financing rates induce the firm to reduce its level of inventory.
b. The firm obtains a new line of credit that enables it to avoid stretching payables to its suppliers.
c. The firm factors its accounts receivable.
d. A recession occurs, and the firm’s customers increasingly stretch their payables