A fiRm Currently Has a 36 Day Cash Cycle

question 358

Multiple Choice

A firm currently has a 36 day cash cycle. Assume that the firm changes its operations such that it decreases its receivables period by 4 days, increases its inventory period by 1 day and decreases
Its payables period by 2 days. What will the length of the cash cycle be after these changes?

• A) 31 days
• B) 33 days
• C) 35 days
• D) 37 days
• E) 38 days

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