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Suppose a firm does the following: (1) Switches from manufacturing the goods it sells to buying and then reselling them, (2) changes from giving customers

Suppose a firm does the following: (1) Switches from manufacturing the goods it sells to buying and then reselling them, (2) changes from giving customers 60 days to pay to 30 days, and (3) begins paying its own suppliers in 60 rather than 30 days. What would happen to its CCC?

a. Decrease

b. Increase

c. No change

Please explain why.

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