What impact would the following actions have on the operating and cash conversion cycles? Would the cycles
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What impact would the following actions have on the operating and cash conversion cycles? Would the cycles increase, decrease, or remain unchanged?
a. More raw material than usual is purchased.
b. The company enters into an off season, and finished goods inventory builds up.
c. Better terms of payment are negotiated with suppliers.
d. The cash discounts offered to customers are decreased.
e. All else remaining the same, an improvement in manufacturing technique decreases the cost of goods sold.
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Related Book For
Fundamentals Of Corporate Finance
ISBN: 9781119795438
5th Edition
Authors: Robert Parrino, David S. Kidwell, Thomas W. Bates
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