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:

Forecasting

The process of making predictions about future events or trends based on data analysis and modeling.

Labor Demand

The total number of hours of employment that employers are willing to hire at a given wage rate, in a specific period.

Labor Supply

The total hours that workers are willing and able to work at a given wage rate in a specific time period.

Realistic Job Preview

Background information about a job's positive and negative qualities.