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The Marschall Co. currently has an operating cycle of 94 days and a cash cycle of 46 days. The firm is implementing some changes which
The Marschall Co. currently has an operating cycle of 94 days and a cash cycle of 46 days. The firm is implementing some changes which will reduce the inventory period by 14 days and decrease the receivables period by 2 days on average. The accounts payable period will be increased by 1 day. How many days will be in the new cash cycle once all of these changes become effective?
The answer is 29 days
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