Helena Furnishings wants to sharply reduce its cash conversion cycle. Which of the following steps would reduce its cash conversion cycle?

a. The company increases its average inventory without increasing its sales.

b. The company reduces its DSO.

c. The company starts paying its bills sooner, which reduces its average accounts payable without reducing its sales.

d. Statements a and b are correct.

e. All of the statements above are correct.

  • avatar
    1 Dec 2012 03:38:44 GMT

    Answer: b. The company reduces its DSO.

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