Indicate the effect that the following will have on the operating cycle. Use the letter I to

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Indicate the effect that the following will have on the operating cycle. Use the letter I to indicate an increase, the letter D for a decrease, or the letter N for no change.

a. Receivables average goes up.

b. Credit repayment times for customers are increased.

c. Inventory turnover goes from 3 times to 6 times.

d. Payables turnover goes from 6 times to 11 times.

e. Receivables turnover goes from 7 times to 9 times.

f. Payments to suppliers are accelerated.

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Essentials of Corporate Finance

ISBN: 978-1260013955

10th edition

Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan

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