Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Holding other factors the same, which of the following will cause both the Operating Cycle and the Cash Cycle to decrease? Decreasing the Accounts Receivables

Holding other factors the same, which of the following will cause both the Operating Cycle and the Cash Cycle to decrease?

Decreasing the Accounts Receivables Turnover from 7 times to 6 times
Decreasing the Inventory Turnover from 7 times to 6 times
Increasing the Inventory Period by 7 days while simultaneously increasing the Accounts Payable period by 8 days
Decreasing the Inventory Period by 7 days while simultaneously decreasing the Accounts Payable period by 7 days
None of the other answer choices are correct
Increasing the average Inventory balance

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Technical Analysis Of The Financial Markets

Authors: John J. Murphy

1st Edition

0735200661, 978-0735200661

More Books

Students also viewed these Finance questions

Question

What training is required for the position?

Answered: 1 week ago