Explanation cash conversion cycle question

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Reference no: EM1350519

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.

Reference no: EM1350519

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