Jaxson and Sons Has an Inventory Period of 33 Days

question 382

Multiple Choice

Jaxson and Sons has an inventory period of 33 days, an accounts payable period of 41 days and an accounts receivable period of 27 days. Management is considering offering a 5% discount if its credit customers pay for their purchases within 10 days. If the new discount is offered the accounts receivable period is expected to decline by 13 days. If the new discount is offered, the operating cycle will decrease from _____ days to _____ days.

• A) 19; 6
• B) 60; 47
• C) 87; 74
• D) 101; 88
• E) 101; 91

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Definitions:

Imagine Themselves

The ability of individuals to envision or conceive of themselves in different scenarios or situations.

Adolescence Influence

The impact that the developmental stage of adolescence has on an individual's behavior, choices, and relationships.

Quality Problem

An issue impacting the standard of a product or service, leading to customer dissatisfaction.

Production Problem

Issues or obstacles encountered in the process of creating goods or services, affecting output or quality.