[afdamnperfect]

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.

[rehmanvohra]

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