In: Finance
Which of the following strategies would likely have a beneficial impact on the clinics cash balance needed for working capital?
A) Increasing Patient days in AR from 35 to 37
B) Decreasing days in Accounts payable from 45 to 40
C) Increasing inventory turnover from 10 to 12
D) Decreasing the Total debt to asset ratio from 50% to 48%
Increase in cash balance can be done by decreasing inventory,
increasing account payable and decreasing account
receivables.
Option c. Increasing inventory turnover from 10 to 12 This is
because it reduces average inventory.