Wilco's Currently Has a Cash Cycle of 43 Days

question 3

Multiple Choice

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

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

Comprehend the differences between intuitive and analytic thought, and their respective influences on decision-making.

Grasp the notion of dual-processing in the human brain and its implications for emotional and analytical processing.

Understand the role of age and education in the development of logical thinking and analytical capabilities.

Understand the primary challenges and tasks of adolescence.

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Definitions:

Current Position Analysis

A company’s ability to pay its current liabilities.

Current Liabilities

Short-term financial obligations due within one year or within the normal operating cycle, such as accounts payable and short-term loans.

Vertical Analysis

An approach to analyzing financial statements where every item within the three primary account categories (assets, liabilities, and equity) on a balance sheet is shown as a percentage of the total category.

Total Liabilities

The combined total of all current and long-term financial obligations owed by an entity at any given time.