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What impact would the following actions have on the operating and cash conversion cycles? Would the cycles increase, decrease, or remain the unchanged? a. More

What impact would the following actions have on the operating and cash conversion cycles? Would the cycles increase, decrease, or remain the unchanged?

  1. a. More raw material than usual is purchased.
  2. b. The company enters into an off season, and inventory builds up.
  3. c. Better terms of payment are negotiated with suppliers.
  4. d. The cash discounts offered to customers are decreased.
  5. e. All else remaining the same, an improvement in manufacturing technique decreases the cost of goods sold.

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