Use the information below to answer the following:

How could ABC Company executives use the Cash Conversion Cycle (CCC) to improve performance, i.e., improve on its strengths and correct its weaknesses?

How can ABC improve its cash position?

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ABC Company, a toy manufacturer, believes the coming holiday season (between Thanksgiving in late November and Christmas on the 25th of December) will be a very good one, expecting an increase of 20% in its sales. Outside economic analysts believe the effects of the recent recession are over. Consumer confidence is high. To meet that 20% increase, however, inventories must be built up so, to finance that expansion, ABC wants to borrow $1,000,000 from its bank.