Mert has a 9 day receivable period, a 30 day payables period, and a 55 day inventory period. Mert just announced that it would stretch out its bill payments to 45days, in order to " control costs and optimize cash flow." The increased payables period will be in effect for all of the company's suppliers.

A) Exactly, what impact did thos change in payables policy have on Mert's operating cycle? Its cash cycle?

B) Describe how this policy change will impact the operating cycles for Cert's suppliers? Their Cash cycles?

C.) Mert lengthened its payables period to "control costs and optimize cash flow." Describe specific benefits, empasizing items from the income statement and/or balance sheet, which will benefit Mert from this change?