Your fiRm Currently Has an Operating Cycle of 64 Days

question 86

Multiple Choice

Your firm currently has an operating cycle of 64 days.You are analyzing some operational changes which are expected to decrease the trade receivables period by 3 days and decrease the inventory
Period by 2 days.The trade payables turnover rate is expected to increase from 7 to 9 times per
Year.If all of these changes are adopted, what will your firm's new operating cycle be?

• A)47 days.
• B)51 days.
• C)54 days.
• D)57 days.
• E)59 days.

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Definitions:

Natural Selection

The evolutionary process where organisms with traits that enhance survival and reproduction are more likely to pass on their genes to the next generation.

Hemispheric Lateralization

The distinction between the functional specializations of the human brain's left and right hemispheres, such as language in the left and spatial abilities in the right.

Left-Brain

The left hemisphere of the brain, often associated with analytical thought, logic, language, and mathematical processes.

Right-Brain

The hemisphere of the brain that is often associated with creative and intuitive processes, spatial abilities, and the appreciation of music and art.