The Fried Green Tomatoes Restaurant increased its operating cycle from 140 days to 148 days while the cash cycle decreased by 3 days.How have these changes affected the accounts payable period?

Name: The Fried Green Tomatoes Restaurant increased its operating cycle from 140 days to 148 days while the cash cycle decreased by 3 days.How have these changes affected the accounts payable period?
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Change in accounts payable period = (148 - 140) + 3 = 11 days; The accounts payable period increased by 11 days.

The Fried Green Tomatoes Restaurant Increased Its Operating Cycle from 140