Helena Furnishings Wants to Reduce Its Cash Conversion Cycle Sharply

question 77

Multiple Choice

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

• A) The company increases its average inventory without increasing its sales.
• B) The company reduces its DSO.
• C) The company starts paying its bills sooner, which reduces its average accounts payable without reducing its sales.
• D) The company increases its DSO.

---

Definitions:

Andes

A major mountain range in South America, extending over seven countries and home to diverse cultures and historical civilizations.

Western Coast of Africa

The coastline along the Atlantic Ocean in West Africa, extending from Senegal to Angola, known for its rich history, including the transatlantic slave trade.

Trading Posts

were locations established primarily for the purpose of trading goods between traders and local populations, significant during the era of exploration and colonial expansion.

Zuni

A Native American tribe primarily located in New Mexico, known for their unique cultural practices, religious beliefs, and handmade jewelry.