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Indicate the effect that each of the following independent actions will have on the operating cycle of the company by answering INCREASE, DECREASE, or NO
Indicate the effect that each of the following independent actions will have on the operating cycle of the company by answering INCREASE, DECREASE, or NO CHANGE. No explanation is required. (a) The company collects its accounts receivable faster. (b) The company pays the suppliers earlier to receive a discount on its purchases. (c) The average accounts receivable that the company holds decreases without any decrease in credit sales. (d) More finished goods are being produced for orders instead of for inventory. (e) The accounts payable turnover decreases from 10 times to 7 times
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