a. Company has an average collection period of 34 days and factors all of its receivables immediately at a 3.1 percent discount. Assume all accounts are collected in full. What is the firm's effective cost of borrowing?

b.

Identify which of the following will increase the operating cycle. Choose only one.

		decrease in accounts payable turnover ratio
		decrease in days' sales in inventory
		Decrease in inventory turnover ratio
		decrease in average collection period
		decrease in accounts payable period