Your Firm Currently Has an Operating Cycle of 64 Days

question 54

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 4 days and decrease the inventory period by 3 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)60 days

---

Definitions:

Side Chain

The part of a molecule that is attached to a core structure and varies among molecules of the same class, influencing the properties of the molecule.

Asparagine

A type of amino acid that plays a vital role in the biosynthesis of proteins.

Hydrolyzed

The chemical process in which a molecule is split into two parts by the addition of a water molecule, often breaking down polymers into monomers.

Nonpolar Side Chain

A side chain in a molecule that does not have a polarity due to equal sharing of electrons, making it hydrophobic in biological molecules like amino acids.