Cailey's Shoppe Has an Inventory Period of 37 Days, an Accounts

question 51

Multiple Choice

Cailey's Shoppe has an inventory period of 37 days, an accounts payable period of 44 days, and an accounts receivable period of 25 days. Management is considering an offer from their suppliers to
Pay within 15 days and receive a 7% discount. If the new discount is taken, the accounts payable
Period is expected to decline by 10 days. If the new discount is taken, the operating cycle will be
_____ days.

• A) 52
• B) 62
• C) 71
• D) 79
• E) 91

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Definitions:

Geometric Characteristic

Refers to any feature of a part or assembly that can be defined in terms of geometry, such as size, shape, orientation, or position.

Position

Refers to the specific location or orientation of an object or component relative to a base or reference point.

Positional Tolerancing

A method of specifying the permissible variation in the position of a part feature relative to its intended design location.

Small Round Holes

Tiny circular openings, typically created through drilling or punching in a material for various purposes.