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A Firm Is Considering the Following Changes: Increasing Inventory Variety,which

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A firm is considering the following changes: increasing inventory variety,which will increase inventory to $60,000,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:

Ocean-Continent

This term is incomplete without further context, but generally refers to geological processes or interactions taking place between oceanic and continental plates.

Continental Crust

The thick part of the Earth's crust that forms the continents, characterized by a composition that is different from oceanic crust.

Rocks

Solid mineral material forming part of the surface of the earth and other similar planets, exposed on the surface or underlying the soil or oceans.

Wooden Pillar

A structural element made of wood, serving as a support in buildings, bridges, or other structures.

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