Question: Given that a CFO is trying to become more efficient in the use of working capital, and given that you are advising the CFO in

Given that a CFO is trying to become more efficient in the use of working capital, and given that you are advising the CFO in the area, you start a conversation about the Cash Conversion Cycle. Your advice towards becoming more efficient would involve Work to decrease DSO and APO which would shorten the Cash Conversion Cycle. Work to increase DSO which would shorten the Cash Conversion Cycle Work to decrease DSO but lengthen APO, and this would shorten the Cash Conversion Cycle. Work to decrease DSO but increase the Average Collection Period, and this would shorten the Cash Conversion Cycle. A company recently calculated that it does not receive payment on the Accounts Receivable until about 62 days. The CFO has reset the firm's policy and expects to be paid within 30 days. The CFO is very busy and has hired a Treasury Analyst from IUPUI to monitor the new credit policy. The most likely strategic measurements that would be most applicable for the Treasury Analyst to use for monitoring are DSO and Average Payable Days DSO and Aging Schedule Average collection period and Average Payable Days EOQ Analysis, Aging Schedule, and Average Payables Days
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