Jaxson and Sons has an inventory period of 33 days, an accounts payable period of 41 days and an accounts receivable 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 accounts
Receivable period is expected to decline by 13 days. If the new discount is offered, the operating
Cycle will decrease from _____ days to _____ days.

Question

Quizplus · Accepted Answer

The Answer of Jaxson and Sons has an inventory period of 33 days, an accounts payable period of 41 days and an accounts receivable 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 accounts
Receivable period is expected to decline by 13 days. If the new discount is offered, the operating
Cycle will decrease from _____ days to _____ days.

Jaxson and Sons Has an Inventory Period of 33 Days