Question: A firm is weighing five plans that affect several current accounts. Given the five plans and their probable effects on inventory, receivables, and payables (as

A firm is weighing five plans that affect several current accounts. Given the five plans and their probable effects on inventory, receivables, and payables (as shown in the following table), which plan would you favor? Explain.

Change Average Age of Average Collection Average Pay Inventory (days) Period (Days) ment Period (Days) +10 +10 Plan +35 +20 -10 20 +15 +20 -15 +5 +15 -15 +5 +20

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