a.
To identify: The effect of operational changes on cash cycle and on operating cycle, as an increase, decrease and no change.
Cash Cycle:
The time period between the payment of cash to the supplier for the purchase of raw material and the receipt of cash from the customer for the sale of product is known as cash cycle of a business. If the cash cycle is shorter the amount of the available cash is more and the company has no need to borrow cash from outsiders.
Operating Cycle:
Operating cycle is a time period between the sale of product and the recovery of cash from the customer. Operating cycle is also known as the business cycle, it involves every quantitative business activity of the company.
b.
To identify: The effect of operational changes on cash cycle and on operating cycle, as an increase, decrease and no change.
Cash Cycle:
The time period between the payment of cash to the supplier for the purchase of raw material and the receipt of cash from the customer for the sale of product is known as cash cycle of a business. If the cash cycle is shorter the amount of the available cash is more and the company has no need to borrow cash from outsiders.
Operating Cycle:
Operating cycle is a time period between the sale of product and the recovery of cash from the customer. Operating cycle is also known as the business cycle, it involves every quantitative business activity of the company.
c.
To identify: The effect of operational changes on cash cycle and on operating cycle, as an increase, decrease and no change.
Cash Cycle:
The time period between the payment of cash to the supplier for the purchase of raw material and the receipt of cash from the customer for the sale of product is known as cash cycle of a business. If the cash cycle is shorter the amount of the available cash is more and the company has no need to borrow cash from outsiders.
Operating Cycle:
Operating cycle is a time period between the sale of product and the recovery of cash from the customer. Operating cycle is also known as the business cycle, it involves every quantitative business activity of the company.
d.
To identify: The effect of operational changes on cash cycle and on operating cycle, as an increase, decrease and no change.
Cash Cycle:
The time period between the payment of cash to the supplier for the purchase of raw material and the receipt of cash from the customer for the sale of product is known as cash cycle of a business. If the cash cycle is shorter the amount of the available cash is more and the company has no need to borrow cash from outsiders.
Operating Cycle:
Operating cycle is a time period between the sale of product and the recovery of cash from the customer. Operating cycle is also known as the business cycle, it involves every quantitative business activity of the company.
e.
To identify: The effect of operational changes on cash cycle and on operating cycle, as an increase, decrease and no change.
Cash Cycle:
The time period between the payment of cash to the supplier for the purchase of raw material and the receipt of cash from the customer for the sale of product is known as cash cycle of a business. If the cash cycle is shorter the amount of the available cash is more and the company has no need to borrow cash from outsiders.
Operating Cycle:
Operating cycle is a time period between the sale of product and the recovery of cash from the customer. Operating cycle is also known as the business cycle, it involves every quantitative business activity of the company.
f.
To identify: The effect of operational changes on cash cycle and on operating cycle, as an increase, decrease and no change.
Cash Cycle:
The time period between the payment of cash to the supplier for the purchase of raw material and the receipt of cash from the customer for the sale of product is known as cash cycle of a business. If the cash cycle is shorter the amount of the available cash is more and the company has no need to borrow cash from outsiders.
Operating Cycle:
Operating cycle is a time period between the sale of product and the recovery of cash from the customer. Operating cycle is also known as the business cycle, it involves every quantitative business activity of the company.
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Chapter 26 Solutions
EBK CORPORATE FINANCE
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