Consider the operating cycle as depicted in Exhibit 2.4, to answer the following questions.

a. Why might a company want to reduce its cash conversion cycle?

b. How might a company reduce its cash conversion cycle?

c. Examine and discuss the potential impacts on customers and suppliers of taking the actions identified in part (b).

Exhibit 2.4

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EXHIBIT 2.4 Operating Cycle Purchases Settle Payables Cash [Start and end] Inventories Accounts Payable Sales Accounts Receivable Returned to cash