8. Other things held constant, which of the following actions would increase the amount of cash...

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Answer 1

Answer #1

The company increases its inventory turnover rate would increase the amount of Cash.

Increase in inventory turnover rate indicates less Cash being blocked in Inventory leading to increase in amount of Cash.

Increase in days sales outstanding indicates delay in collecting Receivables leading to decrease in Cash.

Increase in expenses and decrease in Accounts Payable leads to cash outflow resulting in decrease in cash.

Option B is correct

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Answer 2

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