Question: 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

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 effects will the new system have on working capital and on the cash conversion cycle?

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Working Capital Management is critically important for small businesses because a large portion of their debt is in shortterm liabilities versus longt... View full answer

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