Question
6. Business operating cycle Kolman Kampers has a production cycle of 35 days, a collection cycle of 19 days, and a payment cycle of 18
6.
Business operating cycle Kolman Kampers has a production cycle of
35 days, a collection cycle of 19 days, and a payment cycle of 18 days. What are Kolman's business operating cycle and cash conversion cycle? If Kolman reduces the production cycle by 8 days, what is the effect on the cash conversion cycle? If Kolman decreases the collection cycle by 8 days, what is the effect on the cash conversion cycle? If Kolman increases the payment cycle by,8 days, what is the effect on the cash conversion cycle?What is Kolman's business operating cycle? nothing days(Round to the nearest whole number.)
What is Kolman's cash conversion cycle?
nothing
days(Round to the nearest whole number.)If Kolman reduces the production cycle by
8 days, what is the effect on the cash conversion cycle?(Select the best reponse.)
A.
Reducing the production cycle by 8 days increases the cash conversion cycle by 8 days. The new conversion cycle will
be 44 days.
B.
Reducing the production cycle by
8 days reduces the cash conversion cycle by 8 days. The new conversion cycle will be 28 days.If Kolman decreases the collection cycle by
8 days, what is the effect on the cash conversion cycle?(Select the best reponse.)
A.
Reducing the collection cycle by
8
days increases the cash conversion cycle by
8
days to
44
days.
B.
Reducing the collection cycle by
8
days reduces the cash conversion cycle by
8
days to
28
days.If Kolman increases the payment cycle by
8
days, what is the effect on the cash conversion cycle?(Select the best reponse.)
A.
Increasing the payment cycle by
8
days increases the cash conversion cycle by
8
days to
44
days.
B.
Increasing the payment cycle by
8
days reduces the cash conversion cycle by
8
days to
28
days
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