Question: Determine whether the following will INCREASE, DECREASE, or have NO EFFECT on the operating cycle 1. Accounts payable goes up 2. Accounts receivable goes down

Determine whether the following will INCREASE, DECREASE, or have NO EFFECT on the operating cycle

1. Accounts payable goes up

2. Accounts receivable goes down

3. Customers take longer to pay for the goods

4.Payments to suppliers are accelerated

5. Inventory takes longer to get sold

6. Accounts Receivables Turnover ratio increases from 5 times to 7 times

7. Accounts Payable Turnover ratio increases from 5 times to 7 times

8. Inventory Turnover ratio increases from 5 times to 7 times

Determine whether the following will INCREASE, DECREASE, or have NO EFFECT on the cash cycle:

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

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