We have, Cash cycle = Operating cycle-Accounts payable period |
The decrease in cash cycle = Increase in operating cycle-Change in Accounts payable period |
Therefore, -3days = 2days-Change in Accounts payable period |
Then, Change in Accounts payable period = 3days+2days = 5 days |
Answer: Increase in Accounts payable period = 5 days |
The Happy Flapjack Diner increased its operating cycle from 72 days to 74 days while the...
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