About the operating cycle

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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. Average receivables 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 time

              f. Payments to suppliers are accelerated.

Reference no: EM131871280

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