A Firm Is Considering the Following Changes: Increasing Inventory Variety

question 8

Essay

A firm is considering the following changes: increasing inventory variety which will increase average inventory by $10,000, and offering more liberal sales terms which will result in average receivables increasing to $65,000.These actions are expected to increase sales to $800,000 per year, and cost of goods will remain at 75%.Because of the increased purchases, average payables will increase to $35,000.What effect will these changes have on the cash conversion cycle?

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Definitions:

Sedentary

A lifestyle characterized by a significant amount of sitting or lying down with minimal physical activity, often linked to adverse health outcomes.

Social Support

The perception or reality of being cared for and having assistance available from other people, which can significantly impact health and well-being.

Dynamic Fitness

A state of physical health and well-being that encompasses the ability to perform daily activities with optimal energy, strength, and endurance through various types of physical activities and exercises.

Intervention Efficacy

The effectiveness of a specific intervention or treatment in achieving its intended outcomes or goals.