Eddings Inc. is concerned about the length of its cash conversion cycle. Which of the following steps is most likely to increase its cash conversion cycle (assume that none of the following actions has any impact on sales or COGS)?
A) Change its receivables/collection policy from net 30 to net 45.
B) Change its payables policy to pay bills in 30 days instead of in 45 days.
C) Increase its inventory turnover from 5 times per year to 6 times per year.
D) Both A) and B)
E) All of the above: A), B) and C) will increase the company's cash conversion cycle