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The cash cycle will be increased by: Buying less raw materials to have on hand. Having a larger percentage of customers paying with cash instead
The cash cycle will be increased by:
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Buying less raw materials to have on hand.
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Having a larger percentage of customers paying with cash instead of credit.
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Paying your suppliers earlier to receive the discount they offer.
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Improving the cash discounts given to customers who pay their account early.
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Ordering raw materials inventory only when you need it.
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