All else the same, shortening your firm's cash cycle will _______________.

A) Reduce fixed asset requirements.
B) Increase short-term financing needs.
C) Increase the opportunity costs for holding current assets.
D) Increase return on assets.
E) Increase the need to purchase marketable securities.

Cash Cycle

The time period between the outlay of cash for the production process and the collection of cash from customers.

Fixed Asset Requirements

The necessary investments in long-term assets like property, plant, and equipment that a business needs to carry out its operations.

Return On Assets

A financial ratio indicating how profitable a company is relative to its total assets, calculated by dividing net income by total assets.