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Chasteen Hall currently has 57 days in its cash cycle and 135 days in its operating cycle. The firm purchases its inventory from one supplier.
Chasteen Hall currently has 57 days in its cash cycle and 135 days in its operating cycle. The firm purchases its inventory from one supplier. This supplier has offered a 5 percent discount to the firm if it will pay for its purchases within 10 days instead of the normal 34 days. If the firm opts to take advantage of the discount offered, its new operating cycle will be _____ days and its new cash cycle will be _____ days.
135 days; 57 days
159 days; 57 days
111 days; 33 days
111 days; 111 days
135 days; 81 days
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