Helena Furnishings Wants to Reduce Its Cash Conversion Cycle

question 102

Multiple Choice

Helena Furnishings wants to reduce its cash conversion cycle.Which of the following actions should it take?

• A) Increases average inventory without increasing sales.
• B) Take steps to reduce the DSO.
• C) Start paying its bills sooner,which would reduce the average accounts payable but not affect sales.
• D) Sell common stock to retire long-term bonds.
• E) Sell an issue of long-term bonds and use the proceeds to buy back some of its common stock.

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Definitions:

Productivity Growth

An increase in the efficiency of production processes, leading to a higher output of goods and services for the same input of labor and capital.

Information Workers

refer to individuals whose main job function involves producing, processing, or distributing information, often using technology.

Nation of Immigrants

Refers to the concept that a country is largely made up of immigrants and their descendants, emphasizing the diversity and multicultural aspects of its population.

Productivity Growth

An increase in the efficiency of production, often measured by the amount of goods and services produced per unit of labor.