Your Firm Currently Has an Operating Cycle of 92 Days

question 156

Multiple Choice

Your firm currently has an operating cycle of 92 days. You are analyzing some operational changes which are expected to decrease the accounts receivable period by 4 days and decrease the inventory period by 5 days. The accounts payable turnover rate is expected to increase from 8 to 9 times per year. If all of these changes are adopted, what will be your firm's new operating cycle?

• A) 77.93 days
• B) 80.27 days
• C) 81.93 days
• D) 83.00 days
• E) 84.08 days

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Definitions:

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