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A Company Currently Has a 51 Day Cash Cycle

Question 206

Multiple Choice

A company currently has a 51 day cash cycle. Assume the firm changes its operations such that it decreases its receivables period by 3 days, increases its inventory period by 4 days, and increases
Its payables period by 1 day. What will the length of the cash cycle be after these changes?


A) 43 days
B) 47 days
C) 51 days
D) 53 days
E) 57 days

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