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. ( Payments to suppliers are accelerated. Changes in Cycles Indicate the impact of the following on the cash and operating cycles, respectively. Use the letter I to indicate an increase, the letter D for a decrease, and the letter N for no change. (a) The terms of cash discounts offered to customers are made less favourable. (b) The cash discounts offered by suppliers are increased; thus, payments are made earlier (c) An increased number of customers begin to pay in cash instead of with credit. (d) Fewer raw materials than usual are purchased (e) A greater percentage of raw material purchases are paid for with credit. () More finished goods are produced for inventory instead of for order