A plumbing contractor with many homebuilder clients is experiencing low accounts receivable turnover. How can the contractor improve the firm's liquidity?

Eliminating in-house sales may lead to a decrease in revenue generation rather than improving liquidity. This action could result in a loss of customer relationships and the potential for new sales opportunities, ultimately exacerbating the issue of low accounts receivable turnover.

Increasing inventory may not directly address the liquidity issue related to accounts receivable. While it could potentially lower transaction costs, it ties up cash in stock, which does not help in converting receivables into cash. This approach may also lead to overstocking and associated holding costs.

While increasing prices might improve profit margins, it does not directly resolve the issue of slow accounts receivable turnover. Higher prices could deter clients, potentially leading to a reduction in sales volume and further complicating cash flow issues rather than improving liquidity.