Which of the Following Actions Should Reece Windows Take If

question 35

Multiple Choice

Which of the following actions should Reece Windows take if it wants to reduce its cash conversion cycle?

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

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Definitions:

Representative Sample

A subset of a population that accurately reflects the members of the entire population, used in research to draw conclusions about the population as a whole.

Random Sample

A method of selecting a sample from a population in which each individual has an equal probability of being chosen.

Public Pension System

A government-established program designed to provide retirement income to individuals who have contributed to the system during their working years.

Inferential Statistics

A branch of statistics that allows us to make predictions or inferences about a population based on a sample of data taken from that population.