Business operating cycle.

Kolman Kampers has a production cycle of 27 days, a collection cycle of 25 days, and a payment cycle of 14 days. What areKolman's business operating cycle and cash conversioncycle? If Kolman reduces the production cycle by 1 days, what is the effect on the cash conversioncycle? If Kolman decreases the collection cycle by 1 days, what is the effect on the cash conversioncycle? If Kolman increases the payment cycle by 1 days, what is the effect on the cash conversioncycle?

What isKolman's cash conversioncycle?

[ ] days (Round to the nearest wholenumber.)

If Kolman reduces the production cycle by 1 days, what is the effect on the cash conversioncycle? (Choose the bestresponse.)

A.

Reducing the production cycle by 1 days increases the cash conversion cycle by 1 days. The new conversion cycle will be 39 days.

B.

Reducing the production cycle by 1 days reduces the cash conversion cycle by 1 days. The new conversion cycle will be 37 days.

If Kolman decreases the collection cycle by 1 days, what is the effect on the cash conversioncycle? (Choose the bestresponse.)

A.

Reducing the collection cycle by 1 days increases the cash conversion cycle by 1 days to 39 days.

B.

Reducing the collection cycle by 1 days reduces the cash conversion cycle by 1 days to 37 days.

If Kolman increases the payment cycle by 1 days, what is the effect on the cash conversioncycle? (Choose the bestresponse.)

A.

Increasing the payment cycle by 1 days reduces the cash conversion cycle by 1 days to 37 days.

B.

Increasing the payment cycle by 1 days increases the cash conversion cycle by 1 days to 39 days.