A.

The Downtown Smoke Shoppe has sales of $741,000 and costs of goods sold of $614,000. It also has these average account values: accounts receivable of $171,800, accounts payables of $187,000, and inventory of $201,000. What is the firms operating cycle?

B. A firm has an operating cycle of 144 days and a cash cycle of 101 days. How long will the firms accounts payable period be if the firm decides to increase its accounts payable period by 19 days?

C.

Which one of the following is associated with a flexible short-term financial policy?

restrictive accounts receivable credit terms

high inventory turnover rate

relatively low cash surpluses

high level of inventory