Explore BrainMass

Explore BrainMass

Changes in the operating cycle: Increase, decrease no change for transaction

Changes in the operating cycle. Indicate the effect that the following will have on the operating cycle. Use the letter I to indicate and 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 tunes it 6 times
d. Payables turnover goes from 6 times to 11 times
e. Receivables turnover goes from 7 times to 9 times
f. Payments to suppliers are accelerated