Michael Jackson,Inc.currently has an operating cycle of 154 days and a cash cycle of 38 days.The firm is implementing some changes that will reduce the inventory period by 16 days and decrease the receivables period by 4 days on average.The accounts payable period will be decreased by 4 days.How many days will be in the new cash cycle once all of these changes become effective?
A) 15 days
B) 16 days
C) 22 days
D) 55 days
E) 61 days
Correct Answer:
Verified
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