F-10

Business operating cycle. Kolman Kampers has a production cycle of 39 days, a collection cycle of 25 days, and a payment cycle of 18 days. What are Kolman's business operating cycle and cash conversion cycle? If Kolman reduces the production cycle by 6 days, what is the effect on the cash conversion cycle? If Kolman decreases the collection cycle by 6 days, what is the effect on the cash conversion cycle? If Kolman increases the payment cycle by 6 days, what is the effect on the cash conversion cycle? PORE What is Kolman's business operating cycle? days (Round to the nearest whole number) What is Kolman's cash conversion cycle? days (Round to the nearest whole number) if Kolman reduces the production cycle by 6 days, what is the effect on the cash conversion cycle? (Select the best reponse) O A. Reducing the production cycle by 6 days increases the cash conversion cycle by 6 days. The new conversion cycle will be52 days. B. Reducing the production cycle by 6 days reduces the cash conversion cycle by 6 days. The new conversion cycle will be 40 days If Kolman decreases the collection cycle by 6 days, what is the effect on the cash conversion cycle? (Select the best reponse.) O A. Reducing the collection cycle by 6 days reduces the cash conversion cycle by 6 days to 40 days, B. Reducing the collection cycle by 6 days increases the cash conversion cycle by 6 days to 52 days If Kolman increases the payment cycle by 6 days, what is the effect on the cash conversion cycle? (Select the best reponse.) A. Increasing the payment cycle by 6 days reduces the cash conversion cycle by 6 days to 40 days B. Increasing the payment cycle by 6 days increases the cash conversion cycle by 6 days to 52 days