Answer: The payables turnover decreases.

The cash conversion cycle (CCC) is calculated as: \[ CCC = \text{Days of inventory on hand} + \text{Days of sales outstanding} - \text{Number of days of payables} \] - **Option A (Correct):** A decrease in payables turnover increases the number of days of payables, which reduces the CCC. - **Option B (Incorrect):** A decrease in inventory turnover increases the days of inventory on hand, thereby increasing the CCC. - **Option C (Incorrect):** An increase in the days of sales outstanding would increase the CCC, not decrease it.

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