The Pearson Co. currently has a 25 day cash cycle. Assume the firm changes its operations such that it increases its receivables period by 3 days, decreases its inventory period by 2 days, and
Decreases its payables period by 5 days. What will the length of the cash cycle be after these
Changes?
A) 19 days
B) 23 days
C) 29 days
D) 31 days
E) 35 days
Correct Answer:
Verified
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