Managing Working Capital. A new computer system allows your firm to more accurately monitor inventory and anticipate future inventory shortfalls. As a result, the firm feels more able to pare down its inventory levels. What effect will the new system have on working capital and on the cash conversion cycle?

You've read the homework help rules, so you know the formula...

You type in the question
+
You show your attempts and where you're confused
=
You receive guidance on getting to the answer.

You're halfway there!