Alpha Companies Has an Operating Cycle of 328 Days,a Receivables

question 93

Multiple Choice

Alpha Companies has an operating cycle of 328 days,a receivables period of 64 days,and a payables period of 98 days.If the firm revises its credit policy,it believes it can reduce its receivables period by 9 days.Given this revision,what will be the firm's new cash cycle?

• A)239 days
• B)241 days
• C)230 days
• D)221 days
• E)218 days

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Definitions:

Interrelationships

Mutual or reciprocal relations between components of a system, indicating how they influence or interact with each other within a framework or process.

Crashing

Shortening activity time in a network to reduce time on the critical path so total completion time is reduced.

Network

A collection of interconnected devices or people that exchange data, resources, or communications.

PERT Analysis

Program Evaluation and Review Technique; a project management tool used to plan, schedule, and control complex tasks.