1 pts D Question 37 Coffee Inc. initiates a policy of selling on credit for the first time in the firm's history. Coffee Inc. finds that it now must pay to produce the merchandise but it now experiences a delay in collection of revenues. Coffee Inc.'s problem describes the factor of credit policy effects. W O Cost of Debt O Probability of nonpayment O Cash Discount O Revenue O Cost Question 40 1 pts A Company is holding large sums of cash mainly because it would need a large amount of cash in the event of another pandemic. This is a(n) motive for holding cash. w O Precautionary O Speculative O Adjustment O Holding Transactions Question 29 1 pts A Company has an inventory period of 55 days, an accounts receivable period of 24 days and an accounts payable period of 30 days. The CFO wants to implement a discount plan in order to reduce the receivables period to 18 days. What will happen to the firm's operating cycle? O It will fall from 59 days to 53 days. O It will rise from 85 days to 91 days. It will fall from 79 days to 73 days. It will rise from 81 days to 87 days. O It will be unaffected by the change in policy