A Firm with a Cash Conversion Cycle of 175 Days

question 99

Multiple Choice

A firm with a cash conversion cycle of 175 days can stretch its average payment period from 30 days to 45 days. This will result in a/an ________.

• A) decrease of 30 days in the cash conversion cycle
• B) increase of 15 days in the cash conversion cycle
• C) decrease of 15 days in the cash conversion cycle
• D) increase of 30 days in the cash conversion cycle