Center Enterprises Currently Has an Operating Cycle of 58 Days

question 203

Multiple Choice

Center Enterprises currently has an operating cycle of 58 days. You are analyzing some operational changes which are expected to increase the accounts receivable period by 4 days and decrease the inventory period by 3 days. The accounts payable turnover rate is expected to increase from 9 to 12 times per year. If all of these changes are adopted, what will Center's new operating cycle be?

• A) 56 days
• B) 57 days
• C) 59 days
• D) 60 days
• E) 65 days

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Definitions:

Cognitive Dissonance

A psychological term referring to the mental discomfort experienced when holding two or more conflicting beliefs, values, or ideas simultaneously.

Market Research

The process of gathering information about consumers that will improve marketing efforts.

Marketing Research Process

A systematic approach to collecting, analyzing, and interpreting data related to marketing decision-making, typically involving steps such as defining the problem, developing a research plan, collecting data, and reporting findings.

Analyze Data

The process of inspecting, cleansing, transforming, and modeling data to discover useful information, inform conclusions, and support decision-making.