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1. Indicate the impact of the following on the cash and operating cycles, respectively. Use the letter I to indicate an increase, the letter D
1. Indicate the impact of the following on the cash and operating cycles, respectively. Use the letter I to indicate an increase, the letter D for a decrease, and the letter N for no change. a. The terms of cash discounts offered to our customers are made less favorable. The cash discounts offered by our suppliers are decreased; thus, payments are made later b. c. An increased number of our customers begin to pay in cash instead of with credit. d. Fewer raw materials than usual are purchased e. More finished goods are produced for inventory instead of for order. f. Average receivables go up. g. Inventory turnover goes from 3 times to 7 times
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