1-XYZ Inc. has always paid their suppliers in 30 days. The company just hired a new financial officer who is changing the policy such that suppliers will now be paid in 25 days. All else the same, this change will the accounts payable period and the cash cycle. A) Increase; not affect Increase; increase Increase; decrease D) Decrease; increase E) Decrease; decrease 2- Which of the following are use of cash? 1. Increase in inventory II. Decrease in accounts payable IIT. Decrease in accounts receivable IV. Increase in fixed assets A) II only B) I and IV only! C) I, II, and IV only D) I, III and IV only E) I, II, III and IV IS 3- The financing of temporary current assets with short-term debt is known as: A) Moderate policy. B) Maturity hedging. C) Seasonal funding. D) Flexible policy. E) None of the above. 4-Which of the following statements are correct concerning a restrictive short-term financial policy? L A restrictive policy is most appropriate when carrying costs are low relative to shortage costs. II. A restrictive policy is most appropriate when carrying costs are high relative to shortage costs. III. A restrictive policy requires more short-term debt than does a flexible policy IV. The optimal current asset holdings are lower under a restrictive policy than under a flexible policy. A) I and III only I and IV only II and III only II and IV only II, III, and IV only