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A tightened credit policy, all other variables held constant, would most likely..... Decrease the level of receivables and decrease the cash conversion cycle and ultimately
A tightened credit policy, all other variables held constant, would most likely..... Decrease the level of receivables and decrease the cash conversion cycle and ultimately increase ROA for the firm. Decrease the level of receivables but lengthen the cash conversion cycle, and ultimatelhy decrease ROA for the firm. Increase the level of receivables and lengthen the cash conversion cycle and ultimately increase ROA of the firm. A company recently calculated that it does not receive payment on the Accounts Receivable until about 62 days. The CFO has reset the firm's policy and expects to be paid within 30 days. The CFO is very busy and has hired a Treasury Analyst from IUPUI to monitor the new credit policy. The most likely strategic measurements that would be most applicable for the Treasury Analyst to use for monitoring are DSO and Average Payable Days DSO and Aging Schedule Average collection period and Average Payable Days EOQ Analysis, Aging Schedule, and Average Payables Days
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