The Moose Co

question 26

Multiple Choice

The Moose Co.currently has 81 days in its cash cycle and 136 days in its operating cycle.The firm purchases all of its inventory from one supplier.This supplier has offered a 5 per cent discount to The Moose Co.if it will pay for its purchases within 10 days.If The Moose Co.changes it payables policy and pays in 10 days,the firm's cash cycle will be _____ days.

• A)91
• B)131
• C)114
• D)126
• E)103

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Definitions:

Hydraulic

Hydraulic systems use pressurized fluid to power devices or machinery, transferring energy through the controlled movement and pressure of a liquid, typically oil or water.

Mechanical Force

A push or pull action resulting from the interaction of physical objects, which can cause an object to move, stop, or change direction.

Torque Converter

A type of fluid coupling that allows the engine to spin somewhat independently of the transmission, used in automatic transmissions to improve smoothness.

Hydrodynamics

The science of forces acting on, or exerted by, liquids, usually, but not always, in confined circuits.