Your Firm Currently Has an Operating Cycle of 64 Days

question 109

Multiple Choice

Your firm currently has an operating cycle of 64 days.You are analyzing some operational changes which are expected to decrease the trade receivables period by 3 days and decrease the inventory period by 2 days.The trade payables 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:

M3

A measure of the money supply that includes M2 plus large time deposits, institutional money market funds, and other large liquid assets.

Money Supply

The broad total of financial assets available in an economy at a specified moment.

Gold

A precious metal used as an investment, a currency hedge, and in various industrial applications, valued for its rarity and physical properties.

Silver

A precious metal used for investment, industrial applications, and jewelry, valued both for its monetary and physical properties.