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-   -   Cash Conversion Cycle. (https://www.askmehelpdesk.com/showthread.php?t=441832)

  • Feb 1, 2010, 10:43 AM
    afdamnperfect
    Cash Conversion Cycle.
    Cash Conversion Cycle. What effect will the following have on the cash conversion cycle?
    a. Customers are given a larger discount for cash transactions.
    b. The inventory turnover ratio falls from 8 to 6.
    c. New technology streamlines the production process.
    d. The firm adopts a policy of reducing outstanding accounts payable.
    e. The firm starts producing more goods in response to customers’ advance orders instead
    Of producing for inventory.
    f. A temporary glut in the commodity market induces the firm to stock up on raw materials
    While prices are low.
  • Feb 1, 2010, 11:40 PM
    rehmanvohra

    Try and think of the effect that each transaction will have on the cash conversion cycle and you should get the answer

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