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Your fiRm Currently Has an Operating Cycle of 64 Days

question 340

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Your firm currently has an operating cycle of 64 days. You are analyzing some operational changes which are expected to decrease the accounts receivable period by 3 days and decrease the
Inventory period by 2 days. The accounts payable 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?


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