What will happen to your companys cash cycle

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Your firm has an inventory period of 45 days, an accounts payable period of 22 days, and an accounts receivable period of 28 days. The CFO wants to implement a discount plan in order to reduce the receivables period to 18 days. What will happen to your company’s cash cycle? a. It will fall from 73 days to 63 days. b. It will fall from 51 days to 41 days. c. It will be unaffected by the change in policy. d. It will rise from 45 days to 55 days. e. It will rise from 73 days to 83 days.

Reference no: EM13938812

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