Take Quiz Exit decrease O no change Incorrect Question 10 0 / 3 pts What impact does rising interest rates coupled with tightening of credit terms have on a firm's Operating Cycle and Average Collections Period? Average Collection period increases and Operating Cycle decreases O increases both O decreases both O both stay the same . Operating Cycle increases and Average Collection Period decreases not enough data provided Quiz Score: 21 out of 30Take Quiz Exit Incorrect Question 7 0 / 3 pts Yana and Ursula's Corporation (traded as YUC on the NASDAQ) have annual credit sales of $255,000. Their credit terms are 2/18, net 30. Additionally, 50% of their customers take the discount and pay on day 18, and 50% of their customers pay on day 30. (Assume a 360 day year) If a new and aggressive competitor enters their market area, what is likely to happen to their accounts receivable balance calculated in the prior question, all else the same? It will become larger It will become less It will be proportional to the inverse of the average collection period O not enough data provided It will stay the same Incorrect Question 8 0 / 3 pts Yana and Ursula's Corporation (traded as YUC on the NASDAQ) is a wholesaler. Their customers are small retailers. With interest rates rising, Yana and Ursula's Corporation customers are likely to ,,,,,,,, tighten their own credit terms O not enough data provided O All of the answers shown (except not enough data provided) O reduce their Operating Cycle O reduce their Average Collection Period Question 9 3 / 3 pts All else being equal, rising interest rates and tightening credit have what impact on Accounts Receivable balances in most businesses