If a firm wants to decrease its cash conversion cycle, which of the following actions should it take? Assume everything else is equal.
A. Loosen credit terms to increase the firm's sales.
B. Delay payments made to suppliers so that the firm pays late.
C. Purchase more raw materials to increase the average inventory the firm maintains.
D. Increase the amount the firm borrows from its bank.
E. Decrease the common equity on the firm's balance sheet.
Answer: B
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