1. Operating and Cash Cycles What impact did this change in payables policy have on BlueSky’s operating cycle? Its cash cycle?

2. Operating and Cash Cycles What impact did the announcement have on BlueSky’s suppliers?

3. Corporate Ethics Is it ethical for large firms to unilaterally lengthen their payables periods, particularly when dealing with smaller suppliers?

4. Payables Period Why don’t all firms simply increase their payables periods to shorten their cash cycles?

5. Payables Period BlueSky lengthened its payables period to “control costs and optimize cash flow.” Exactly what is the cash benefit to BlueSky from this change?