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A firm is considering several policy changes to increase sales. It will increase the variety of goods it keeps in inventory, but this will increase
A firm is considering several policy changes to increase sales. It will increase the variety of goods it keeps in inventory, but this will increase inventory by $10,900. It will offer more liberal sales terms, but this will result in average receivables increasing by $66,800. These actions are expected to increase sales by $809,000 per year, and cost of goods will remain at 70% of sales. Because of the firm's increased purchases for its own production needs, average payables will increase by $35,900. What effect will these changes have on the firm's cash cycle? (Use 365 days in a year. Do not round your intermediate calculations. Round your answer to 2 decimal places.) Change in cash cycle days
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