Your Firm Currently Has an Operating Cycle of 64 Days

question 33

Multiple Choice

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?

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

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Definitions:

Comprehend E-mail Messages

The process of understanding and interpreting the content and intent of an email communication.

Vastly Underestimate

To significantly underrate the size, value, importance, or capability of someone or something.

Relay

A system or process in which information, data, or objects are passed along through a series of stations or individuals until the final destination is reached.

Cluster Chain

A series of events, ideas, or objects grouped together due to their connection or relation to one another.