365-day year. He believes he can reduce the average inventory to $627,465 with no effect on sales. By how much must the firm also reduce its accounts receivable to meet its goal in the reduction of its cash conversion cycle? a. $1,004 b. $943 c. $823 d. $1,224

Q: Provide Answer with Calculation

A:

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Conversion Cycle

Conversion cycle is also known as cash cycle or net operating cycle. Conversion cycle refers to how much time a company takes to turn its investments which is done from stock or any other financial resources into cash flows from sales.