Why is the interest rate of a regular bond higher than interest rate of a convertible bond of equal risk and maturity? 5. What is the significance of the Cash Conversion Cycle 6. Why do we say that an increase in ratio will decrease profitability? 7 Assume that XYZ Co. has accounts receivable of $800,000, inventory of $900,000. net sales of $9,000,000. cost of goods sold of $7,000,000, accounts payable of $700,000, and net profit of $100,000. Compute the following