Question: Please answer the following 1.What does DSO means? How is this computed? 2.Define the following terms:Inventory conversion period, average collecting period, and payables deferral period.

Please answer the following

1.What does DSO means? How is this computed?

2.Define the following terms:Inventory conversion period, average collecting period, and payables deferral period. Explain how these terms are used to form the cash conversion cycle

3.Who would a reduction in the cash conversion cycle increase profitability?

4.What are some actions a firm can take to shorted its cash conversion cycle?

5.How can Cash discount be used to influence sales volume and the DSO?

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