A company begins with the following simple balance sheet: $10 million in real assets; $1 million cash; $5.5 million each in owners’ equity and debt.  Which of the following actions will decrease a company’s leverage ratio? Choose

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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.