UPENN: LOOSE LEAF CORP.FIN W/CONNECT
UPENN: LOOSE LEAF CORP.FIN W/CONNECT
17th Edition
ISBN: 9781260361278
Author: Ross
Publisher: McGraw-Hill Publishing Co.
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Chapter 26, Problem 3QP

Changes in the Operating Cycle Indicate the effect that the following will have on the operating cycle. Use the letter I to indicate an increase, the letter D for a decrease, and the letter N for no change.

  1. a. Receivables average goes up.
  2. b. Credit repayment times for customers are increased.
  3. c. Inventory turnover goes from 3 times to 6 times.
  4. d. Payables turnover goes from 6 times to 11 times.
  5. e. Receivables turnover goes from 7 times to 9 times.
  6. f. Payments to suppliers are accelerated.
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