Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

What does the cash operating cycle, days in payables (days in sales + days in inventory) tell analysts about a company? Group of answer choices

What does the cash operating cycle, days in payables (days in sales + days in inventory) tell analysts about a company? Group of answer choices

a. Firms that pay their suppliers prior to collecting from customers are less efficient in their operations and must finance their operating capital.

b. Firms that pay their suppliers prior to collecting from customers turn their inventory quicker.

c. Firms that pay their suppliers prior to collecting from customers receive better credit terms from their suppliers

d. Firms that pay their suppliers prior to collecting from customers have less stringent credit terms for their customers

e. All of the above

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Cima P1 Management Accounting Study Text New 2019 Syllabus

Authors: Acorn Profession Tutors

1st Edition

B084ZZPF9N

More Books

Students also viewed these Accounting questions