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XYZ historically acquired products that were held in inventory until they could be sold to a customer. The firm is now changing its policy and

XYZ historically acquired products that were held in inventory until they could be sold to a customer. The firm is now changing its policy and only acquiring a product when it receives an actual order from a customer. All else equal, this change will:

increase the operating cycle.

shorten the accounts payable period.

lengthen the accounts receivable period.

decrease the cash cycle.

decrease the inventory turnover rate.

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