4. Cash cycle (S31.1) What effect will each of the following have on the cash cycle?

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.