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.