19 Changes in the Operating Cycle Indicate the effect that the following will have on the operating cycle.

Use the letter I to indicate an increase, the letter D for a decrease and the letter N for no change.

(a) Receivables average goes up.

(b) Credit repayment times for customers are increased.

(c) Inventory turnover goes from 3 times to 6 times.

(d) Payables turnover goes from 6 times to 11 times.

(e) Receivables turnover goes from 7 times to 9 times.

(f) Payments to suppliers are accelerated.