Bulldogs Inc. has a normal operating cycle of 32 days and cash conversion cycle of 25 days. Which of the following must be true if the company wants to shorten its cash conversion cycle to 20 days? Decrease the operating profit by 2% Increase the age of inventory by 5 day Increase the accounts payable deferral period by 2 days Decrease the days sales outstanding by 5 days

Bulldogs Inc. has a normal operating cycle of 32 days and cash conversion cycle of 25 days. Which of the following must be true if the company wants to shorten its cash conversion cycle to 20 days? Decrease the operating profit by 2% Increase the age of inventory by 5 day Increase the accounts payable deferral period by 2 days Decrease the days sales outstanding by 5 days

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter16: Supply Chains And Working Capital Management

Section: Chapter Questions

Problem 11P

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