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Changes in Cash Cycle Determine whether the following will INCREASE, DECREASE, or have NO EFFECT on the cash cycle (also provide your explanation): Accounts payable
Changes in Cash Cycle
Determine whether the following will INCREASE, DECREASE, or have NO EFFECT on the cash cycle (also provide your explanation):
- Accounts payable goes down
- Accounts receivable goes up
- Customers take longer to pay for the goods
- Payments to suppliers are accelerated
- Inventory gets sold quickly
- Accounts Receivables Turnover ratio decreases from 8 times to 6 times
- Accounts Payable Turnover ratio increases from 6 times to 8 times
- Inventory Turnover ratio increases from 6 times to 8 times
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