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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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