Question

QUESTION 22 The Green Fildle increased its operating cycle from 139 days to 144 days while the cash cycle increased by 3 days
0 0
Add a comment Improve this question Transcribed image text
Answer #1

Please find below the solution.. let me know if you need any clarification

Change in account payable period = (144-139)-3
Change in account payable period = 2 Days
ans is option : C) increased by 2 days
Add a comment
Know the answer?
Add Answer to:
QUESTION 22 The Green Fildle increased its operating cycle from 139 days to 144 days while...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • The Happy Flapjack Diner increased its operating cycle from 72 days to 74 days while the...

    The Happy Flapjack Diner increased its operating cycle from 72 days to 74 days while the cash cycle decreased by 3 days. How have these changes affected the accounts payable period?

  • Question 49 (Mandatory) (1 point) Operating cycle is measured as: 0 0 days' sales in inventory...

    Question 49 (Mandatory) (1 point) Operating cycle is measured as: 0 0 days' sales in inventory plus average collection period. od days' sales in inventory minus average collection period. ** 0 inventory turns plus average collection period. 0 inventory turns minus average collection period. Question 53 (Mandatory) (1 point) Which of these is the period of time after a check has been written, but not yet cleared and deposited? Float Overnight securities O Safety stock Liquid current assets Question 57...

  • Increased Efficiency, Inc. is looking for ways to shorten its cash conversion cycle. It has annual...

    Increased Efficiency, Inc. is looking for ways to shorten its cash conversion cycle. It has annual sales of $36,500,000, or $100,000 a day on a 365-day basis. The firm's cost of goods sold is 65% of sales. On average, the company has $9,000,000 in inventory and $8,000,000 in accounts receivable. Its CFO has proposed new policies that would result in a 20% reduction in both average inventories and accounts receivable. She also anticipates that these policies would reduce sales by...

  • 24. Assume a firm has a cash cycle of 40 days and an operating cycle of...

    24. Assume a firm has a cash cycle of 40 days and an operating cycle of 67 days. What is its average payment period? 25. Assume a firm has a cash cycle of 77 days and an operating cycle of 135 days. What is its payables turnover? (Use 365 days a year. Round your answer to 2 decimal places.)    Payable's turnover will be 365 days/58 days = 6.29 times 28. Calculating Fees on a Loan Commitment You have approached...

  • Bruceton Fanns currently has an operating cycle of 76.3 days. The finn is analyzing some operational...

    Bruceton Fanns currently has an operating cycle of 76.3 days. The finn is analyzing some operational changes that are expected to decrease the accounts receivable period by 2.8 days and decrease the inventory period by 3.1 days. The accounts payable turnover rate is expected to increase from seven to eight times per year. If all of these changes are adopted, what will be the firm's new operating cycle? 8.7 days B) 61.3 days C) 54.9 days D) 70.4 days E)...

  • P15-1 Cash conversion cycle Metal Supplie ion cycle Metal Supplies is concerned about its cash management....

    P15-1 Cash conversion cycle Metal Supplie ion cycle Metal Supplies is concerned about its cash management. On day's sales in inventory (duration of inventory on shelf) is 90 days. Accounts receivable are collected in 90 days, while accounts are collected in 90 days, while accounts payable are paid in 60 days. Metal Supplies has annual sales of upplies has annual sales of $ 14 million; cost of goods sold total $9.5 million, and purchases are $5 million. (Note: Use a...

  • 10. If a company's account payable period is longer than its operating cycle, then which of...

    10. If a company's account payable period is longer than its operating cycle, then which of the following is most likely to be true: A) the company can avoid paying corporate taxes on earnings retained as cash. B) the company's future cash flows will increase at a steady rate. C) the company's cash cycle is negative D) the company pays for its inventory before it receives payments for its sales E) the company's cash cycle is longer than its operating...

  • 10. If a company's account payable period is longer than its operating cycle, then which of...

    10. If a company's account payable period is longer than its operating cycle, then which of the following is most likely to be true: A) the company can avoid paying corporate taxes on earnings retained as cash. B) the company's future cash flows will increase at a steady rate. C) the company's cash cycle is negative D) the company pays for its inventory before it receives payments for its sales E) the company's cash cycle is longer than its operating...

  • QUESTION 19 Which one of the following defines the cash cycle? A Operating cycle minus the...

    QUESTION 19 Which one of the following defines the cash cycle? A Operating cycle minus the accounts payable period. B. Operating cycle minus the inventory period. o Operating cycle minus the accounts receivable period. D. Inventory period plus the accounts payable period. E. Inventory period plus the accounts receivable period. QUESTION 20 The Du Pont identity can be best defined by which one of the following? O A Return on equity, total asset turnover, and equity multiplier B. Profit margin,...

  • Monar Inc.'s CFO would like to decrease its cash conversion cycle by 10 days. The company...

    Monar Inc.'s CFO would like to decrease its cash conversion cycle by 10 days. The company carries average inventory of $750,000. Its annual sales are $10 million, its cost of goods sold is 75% of annual sales, and its average collection period is twice as long as its inventory conversion period. It uses a 365-day year. The firm buys on terms of net 30 days, and it pays on time. The CFO believes he can reduce the average inventory to...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT