Bruceton Farms Currently Has an Operating Cycle of 76

question 46

Multiple Choice

Bruceton Farms currently has an operating cycle of 76.3 days.The firm is analyzing some operational changes that are expected to decrease the accounts receivable period by 2.8 days and decrease the inventory period by 3.1 days.The accounts payable turnover rate is expected to increase from seven to eight times per year.If all of these changes are adopted,what will be the firm's new operating cycle?

• A)68.7 days
• B)61.3 days
• C)54.9 days
• D)70.4 days
• E)76.2 days

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Definitions:

GDP Deflator

An economic metric that converts output measured at current prices into constant-dollar GDP, reflecting the effects of inflation.

Real GDP

The value of all finished goods and services produced within a country's borders in a specific time period, adjusted for inflation.

GDP

Gross Domestic Product, the total monetary value of all goods and services produced within a country's borders in a specific time period.

Net Domestic Product

The total value of all goods and services produced within a country in a year, after accounting for depreciation.