Jane has started a gift basket company that specialises in regional products.Several companies use her baskets for the holidays, to welcome new employees and for their sales staff to use as gifts for corporate clients.Because she noticed her average collection period from last quarter to this quarter had doubled to 60 days, she then realised the company's average age in inventory has increased from 30 to 40 days and the average payment period dropped from 35 to 30 days.After calculating each quarter's cash conversion cycles, what do the changes indicate?
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