4. Cash Conversion Cycle. What effect will the following events have on the cash conversion cycle? (LOI)

a. Higher financing rates induce the firm to reduce its level of inventory.

b. The firm obtains a new line of credit that enables it to avoid stretching payables to its suppliers.

c. The firm factors its accounts receivable.

d. A recession occurs, and the firm's customers increasingly stretch their payables. 5. Managing Working Capital. A new computer system allows your firm to more accurately monitor inventory and anticipate future inventory shortfalls. As a result, the firm feels more able to pare down its inventory levels. What effect will the new system have on working capital and on the cash conversion cycle? (LOI)