What effect will each of the following have on the cash conversion cycle ? a. The inventory

Question:

What effect will each of the following have on the ?
a. The inventory turnover falls from 80 to 60 days.
b. Customers are given a larger discount for cash transactions.
c. The firm adopts a policy of reducing accounts payable.
d. The firm starts producing more goods in response to customers' advance orders instead of producing ahead of demand.
e. A temporary glut in the commodity market induces the firm to stock up on raw materials while prices are low.
Cash Conversion Cycle
Cash conversion cycle measures the total time a business takes to convert its cash on hand to produce, pay its suppliers, sell to its customers and collect cash from its customers. The process starts with purchasing of raw materials from suppliers,...