Customers are given a bigger discount for cash transactions

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Reference no: EM13746402

What impact will each of the following events have upon a firm’s cash conversion period (that is, will the CCP increase, decrease, remain the same):

a. Customers are given a bigger discount for cash transactions.

b. The inventory turnover falls from 8x to 6x.

c. New production and operations technology streamlines (improves) the production process.

d. The firm adopts a policy of reducing its outstanding accounts payable (i.e., AP falls).

Reference no: EM13746402

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