Use the information below to answer the following:
How could ABC Company executives use the Cash Conversion Cycle (CCC) to improve performance, i.e., improve on its strengths and correct its weaknesses?
How can ABC improve its cash position?
ABC Company, a toy manufacturer, believes the coming holiday season (between Thanksgiving in late November and Christmas on the 25th of December) will be a very good one, expecting an increase of 20% in its sales. Outside economic analysts believe the effects of the recent recession are over. Consumer confidence is high. To meet that 20% increase, however, inventories must be built up so, to finance that expansion, ABC wants to borrow $1,000,000 from its bank.