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Chasteen Hall Currently Has 55 Days in Its Cash Cycle

Question 72

Multiple Choice

Chasteen Hall currently has 55 days in its cash cycle and 131 days in its operating cycle.The firm purchases its inventory from one supplier.This supplier has offered a 5 percent discount to The Switch Back if it will pay for its purchases within 10 days instead of the normal 32 days.If the Switch Back opts to take advantage of the discount offered,its new operating cycle will be _____ days and its new cash cycle will be _____ days.


A) 109; 32
B) 109; 77
C) 131; 32
D) 131; 77
E) 153; 77

Correct Answer:

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