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:

Endocrinologist

A medical specialist focused on diagnosing and treating conditions related to hormones and the endocrine system.

Nephrologist

A medical doctor specializing in the care and treatment of diseases related to the kidneys.

Anesthesiologist

A medical specialist focused on providing pain relief and maintenance of patient stability during surgical procedures.

Neurologist

A medical doctor specializing in the nervous system, including the brain, spinal cord, nerves, and muscles, diagnosing and treating neurological disorders.