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Indicate the effect that the following will have on the operating cycle. I = indicate an increase and D = a decrease or N =

Indicate the effect that the following will have on the operating cycle. I = indicate an increase and D = a decrease or N = no change.

Average receivables goes up

Credit repayment times for customers are increased

Inventory turnover goes down 3 times to 6 times

Payables turnover goes from 6 times to 11 times

Receivables turnover goes from 7 times to 9 times

Payments to suppliers are accelerated

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