Peterson's Antiquities currently has a 31 day cash cycle. Assume the firm changes its operations such that it decreases its receivables

Metal Products Co. has an inventory period of 53 days, an accounts payable period of 68 days, and an accounts receivable turnover rate of 18. What is the length of the cash cycle?    A.  3.00 days B.  5.28 days C.  26.28 days D.  71.00 days E.  73.28 days Cash cycle = (365/18) + 53 - 68 = 5.28 days

71.

West Chester Automation has an inventory turnover of 17.5 and an accounts payable turnover of 11. The accounts receivable period is 36 days. What is the length of the cash cycle?    A.  5.67 days B.  23.68 days C.  41.00 days D.  52.00 days E.  58.81 days Cash cycle = (365/17.5) + 36 - (365/11) = 23.68 days

72.

Peterson's Antiquities currently has a 31 day cash cycle. Assume the firm changes its operations such that it decreases its receivables period by 2 days, decreases its inventory period by 3 days, and decreases its payables period by 4 days. What will the length of the cash cycle be after these changes?    A.  22 days B.  23 days C.  29 days D.  30 days E.  31 days Cash cycle = 31 - 2 - 3 + 4 = 30 days