Your firm currently has an operating cycle of 64 days. You are analyzing some operational changes, which are expected to decrease the accounts receivable period by 3 days and decrease the inventory period by 2 days. The accounts payable turnover rate is expected to increase from 7 to 9 times per year. If all of these changes are adopted, what will your firm's new operating cycle be?

Answer rating: 100% (QA)

The operating cycle is calculated as the sum of the days in inventory and da... View the full answer