Which of the following actions should Paperang Inc. take if it wants to reduce its cash conversion cycle? a. Sell common stock to retire long-term bonds. b. Sell an issue of long-term bonds and use the proceeds to buy back some of its common stock. c. Take steps to reduce the DSO. d. Start paying its bills sooner, which would reduce the average accounts payable but not affect sales. e. Increase average inventory without increasing sales.
Which of the following actions should Paperang Inc. take if it wants to reduce its cash conversion cycle? a. Sell common stock to retire long-term bonds. b. Sell an issue of long-term bonds and use the proceeds to buy back some of its common stock. c. Take steps to reduce the DSO. d. Start paying its bills sooner, which would reduce the average accounts payable but not affect sales. e. Increase average inventory without increasing sales.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Which of the following actions should Paperang Inc. take if it wants to reduce its cash conversion cycle?
a. Sell common stock to retire long-term bonds.
b. Sell an issue of long-term bonds and use the proceeds to buy back some of its common stock.
c. Take steps to reduce the DSO.
d. Start paying its bills sooner, which would reduce the average accounts payable but not affect sales.
e. Increase average inventory without increasing sales.
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