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

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Definitions:

Coniferous Trees

A group of trees that bear cones and evergreen needles or scale-like leaves, including pines, spruces, and firs.

Forbs

Flowering plants that are not grasses, sedges, or rushes, often found in natural meadows and prairies.

Tree Ferns

Tree Ferns are a group of ferns that grow with a trunk elevating the fronds above ground level, resembling a tree, found primarily in tropical and subtropical regions.

Chordates

A group of animals that have a notochord, a dorsal nerve cord, pharyngeal slits, and a post-anal tail at some point during their development.