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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 . decrease of 15 days in the cash conversion cycle increase of 15 days in the cash conversion cycle increase of 30 days in the cash conversion cycle decrease of 30 days in the cash conversion cycle

Respuesta :

A company with a 175-day cash conversion cycle can increase its typical payment time from 30 to 45 days. As a result, the cash conversion period will shorten by 15 days. Hence, Option A is correct.

The length of time it takes for a business to turn money spent on manufacturing and sales into cash is known as the cash conversion cycle. It is used to gauge how well a company uses its working capital.

Learn how to calculate the cash conversion cycle and how to apply it in analysis. The cash conversion cycle is a crucial business indicator that illustrates how effective a company is.

A company can monitor it to understand how rapidly cash is being converted from sales into cash and vice versa. It helps business owners to have a comprehensive understanding of their cash flow situation.

Therefore, Option A is correct.

Learn more about cash conversion from here:

https://brainly.com/question/19595232

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