Smiley 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 percent 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 cash cycle will change from _____ days to _____ days.
A) 19;6
B) 60;47
C) 87;74
D) 101;88
E) 101;91
Correct Answer:
Verified
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