Which of the following will increase the operating cycle?
A) The cash cycle decreases by 1 day but the average payment period increases by 2.5 days.
B) The days' sales in inventory decreases by 1 days but the average collection period increases by 2 days.
C) COGS stays the same but inventory increases.
D) All of these will increase the operating cycle.
Correct Answer:
Verified
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