If you decide you reduce your cash cycle, which of the following actions will you perform I. Reduce A/R II. Increase A/R III. Reduce A/P IV. Increase A/P V. Reduce Inventory VI. Increase Inventory

Option A ) I, III, V

Option B) I, III, VI

Option C) I, IV, V

Option D) II, III, V

Option E) II, IV, VI

I am thinking of Option E, as we need high A/R and AP to shorten the cash cycle and a higher inventory to convert assets to cash?

Let me know if my analysis for this case is correct for the cash cycle theory.

Thanks!