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Business, 02.12.2019 19:20

Will the following increase or decrease the cash cycle?

a. customers are given a larger discount for cash transactions.

b. the inventory turnover ratio falls from 8 to 6.

c. new technology streamlines the production process.

d. the firm adopts a policy of reducing outstanding accounts payable.

e. the firm starts producing more goods in response to customers’ advance orders instead of producing for inventory.

f. a temporary glut in the commodity market induces the firm to stock up on raw materials while prices are low.

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Will the following increase or decrease the cash cycle?

a. customers are given a larger...
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