Cash Conversion Cycle: what effect for events?
Not what you're looking for?
Cash Conversion Cycle. What effect will the following events have on the cash conversion cycle?
a. Higher financing rates induce the firm to reduce its level of inventory.
b. The firm obtains a new line of credit that enables it to avoid stretching payables to its suppliers.
c. The firm factors its accounts receivable.
d. A recession occurs, and the firm's customers increasingly stretch their payables.
Purchase this Solution
Solution Summary
In a sentence for each, the solution explains the answer.
Solution Preview
CCC = Accounts receivable turnover in days + Inventory turnover in days - Accounts payable turnover in days
(a) ...
Purchase this Solution
Free BrainMass Quizzes
Change and Resistance within Organizations
This quiz intended to help students understand change and resistance in organizations
Basic Social Media Concepts
The quiz will test your knowledge on basic social media concepts.
Writing Business Plans
This quiz will test your understanding of how to write good business plans, the usual components of a good plan, purposes, terms, and writing style tips.
Team Development Strategies
This quiz will assess your knowledge of team-building processes, learning styles, and leadership methods. Team development is essential to creating and maintaining high performing teams.
Paradigms and Frameworks of Management Research
This quiz evaluates your understanding of the paradigm-based and epistimological frameworks of research. It is intended for advanced students.