Metal Designs, Inc., historically produced products for inventory. Now, the firm only produces a product when it receives an actual order

Metal Designs, Inc., historically produced products for inventory. Now, the firm only produces a product when it receives an actual order from a customer. All else equal, this change will:    A.  increase the operating cycle. B.  lengthen the accounts receivable period. C.  shorten the accounts payable period. D.  decrease the cash cycle. E.  decrease the inventory turnover rate. Refer to section 18.2

27.

Which of the following statements is (are) correct? I. An increase in the accounts payable period shortens the cash cycle. II. The cash cycle is equal to the operating cycle minus the inventory period. III. A negative cash cycle is preferable to a positive cash cycle. IV. The cash cycle plus the accounts receivable period is equal to the operating cycle.    A.  I only B.  III and IV only C.  I and III only D.  I and IV only E.  I, II, and III only Refer to section 18.2

28.

Which one of the following statements is correct concerning the cash cycle?    A.  The longer the cash cycle, the more likely a firm will need external financing. B.  Increasing the accounts payable period increases the cash cycle. C.  A positive cash cycle is preferable to a negative cash cycle. D.  The cash cycle can exceed the operating cycle if the payables period is equal to zero. E.  Offering early payment discounts to customers will tend to increase the cash cycle. Refer to section 18.2

29.

Which of the following actions will tend to decrease the inventory period? I. discontinuing all slow-selling merchandise II. selling obsolete inventory below cost just to get rid of it III. buying raw materials only as needed for the manufacturing process IV. producing goods on demand versus for inventory    A.  I and III only B.  II and IV only C.  II, III, and IV only D.  I, II, and III only E.  I, II, III, and IV Refer to section 18.2