Homework Answers
Operating Cycle = Inventory Period + Accounts Receivable Period
Current Operating Cycle = 76.4 days
Due to Some implementation there are Operatational changes that would change the Operating Cycle.
New Expected Operating Cycle = Current Operating Cycle + Change in Inventory Period + Change in Accounts Receivable Period
= 76.4 days + (-5.3 days) + 2.2 days
= 73.3 days
Option D
Note- Accounts Payable Period is not part of Operating cycle.
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