Jaxson and Sons has an inventory period of 33 days, a trade payables period of 41 days and a trade receivables period of 27 days.Management is considering offering a 5% discount if its credit
Customers pay for their purchases within 10 days.If the new discount is offered the trade
Receivables period is expected to decline by 13 days.If the new discount is offered, the operating
Cycle will decrease from _____ days to _____ days.
A)19; 6
B)60; 47
C)87; 74
D)101; 88
E)101; 91

Question

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The Answer of Jaxson and Sons has an inventory period of 33 days, a trade payables period of 41 days and a trade receivables period of 27 days.Management is considering offering a 5% discount if its credit
Customers pay for their purchases within 10 days.If the new discount is offered the trade
Receivables period is expected to decline by 13 days.If the new discount is offered, the operating
Cycle will decrease from _____ days to _____ days.
A)19; 6
B)60; 47
C)87; 74
D)101; 88
E)101; 91

Jaxson and Sons Has an Inventory Period of 33 Days