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Chasteen Hall currently has 67 days in its cash cycle and 155 days in its operating cycle. The firm purchases its inventory from one supplier.
Chasteen Hall currently has 67 days in its cash cycle and 155 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 15 days instead of the normal 29 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.
- A. 141 days; 53 days
- B. 141 days; 141 days
- C. 155 days; 81 days
- D. 169 days; 67 days
- E. 155 days; 67 days
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