If a preferred stock is of the cumulative type, dividends cannot be passed if they are earned. dividends must be paid, and if not a liability is created. dividends must be paid on an equal basis with common stock, so long as earnings permit. unpaid dividends of one period must be carried forward and paid in subsequent periods before anything can be paid to common stockholders. Which of the following will increase the operating cycle? All of these will increase the operating cycle The days' sales in inventory decreases by one day but the average collection period increases by two days. COGS stays the same but inventory increases The cash cycle decreases by one day but the average payment period increases by two and a half days