- “Credit Policy” Please respond to the following:
- Imagine that a tour company has been experiencing a buildup in inventories, a slowdown in AR collections, and declining net income. Propose two (2) immediate steps that the CFO should take in order to reverse this situation. Provide support for your rationale.
- Analyze the cash conversion cycle and its components. Determine the effect that speeding up the cash conversion cycle has on return on equity (ROE). Provide an example of the effect that speeding up a cash conversion has on ROE that supports your response.