Question: Changes in Cash Cycle Determine whether the following will INCREASE, DECREASE, or have NO EFFECT on the cash cycle (also provide your explanation): Accounts payable

Changes in Cash Cycle

Determine whether the following will INCREASE, DECREASE, or have NO EFFECT on the cash cycle (also provide your explanation):

  1. Accounts payable goes down
  2. Accounts receivable goes up
  3. Customers take longer to pay for the goods
  4. Payments to suppliers are accelerated
  5. Inventory gets sold quickly
  6. Accounts Receivables Turnover ratio decreases from 8 times to 6 times
  7. Accounts Payable Turnover ratio increases from 6 times to 8 times
  8. Inventory Turnover ratio increases from 6 times to 8 times

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