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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 $11,400. It will offer more liberal sales terms, but this will result in average receivables increasing by $67,800. These actions are expected to increase sales by $814,000 per year, and cost of goods will remain at 80% of sales. Because of the firm's increased purchases for its own production needs, average payables will increase by $36,400. 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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