A Firm Currently Has a 43 Day Cash Cycle

question 67

Multiple Choice

A firm currently has a 43 day cash cycle. Assume that the firm changes its operations such that it increases its receivables period by 2 days,decreases its inventory period by 1 day and increases its payables period by 3 days. What will the length of the cash cycle be after these changes?

• A) 38 days
• B) 39 days
• C) 41 days
• D) 43 days
• E) 45 days

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Definitions:

Theory of Atoms

A scientific theory that matter is composed of discrete units called atoms, which are the basic building blocks of chemical substances.

Law of Definite Proportions

A chemical law stating that a compound always contains exactly the same proportion of elements by mass.

Dalton's Atomic Theory

A foundational concept in chemistry that asserts elements are composed of tiny, indivisible particles called atoms, and that chemical reactions involve the rearrangement of these atoms.

Rutherford

Refers to Ernest Rutherford, the scientist who proposed the model of the atom with a central nucleus surrounded by electrons.