Will the following increase or decrease the cash 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.

Answer rating: 100% (QA)

B is the correct answer The inventory turnover ratio falls from 8 to 6 Inventory Turn... View the full answer