Helena Furnishings wants to sharply reduce its cash conversion cycle. Which of t

ID: 2757473 • Letter: H

Question

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

Everything else being same, the company decreases its average inventory.

Everything else being same, the company increases the credit period provided to customers.

Everything else being same, the company pays faster to its suppliers.

All of the statements above are correct.

None of the statements above are correct.

Everything else being same, the company decreases its average inventory.

Everything else being same, the company increases the credit period provided to customers.

Everything else being same, the company pays faster to its suppliers.

All of the statements above are correct.

None of the statements above are correct.

correct option is "E" -None of statment is correct.

All of above would result in increase in cash conversion cycle .as it is given by :

Cash conversion cycle = days in inventory outstanding +days in sales outstandng - days in payables outstanding

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