5.15 Is it possible for a firm's cash cycle to be longerthan its operating cycle? Explain why or why not.Use the following

info to answer following 5 questions.

In April 1994 Ameritech Corporation. one

al the "Baby Ebell phonecompanies, told its 70,000suppliers that it would stretch out its bill payments to 45 days from 30 days beginning on May I. The reasongiven was "to control costs and optimize cash flow.

5.16 What impact did this change in payables policyhave on Ameritech's operating eycle? Its cash cycle?

5.17What impact did the announcement have onAmeritech's suppliers?

5.18 Is it ethical for large firms to unilaterally lengthen theirpayables periods, particularly when dealing with smaller

suppliers?

5.19 Why don't all firms simply increase their payables periods toshorten their cash cycles?

5.20 Ameritech lengthened its payables period to "control costsund optimize cash flow," Exactly what is the cash benefit to

Ameritech from thischange