Which one of the following statements is correct concerning the cash cycle ? Accepting a supplier ’ s discount for early payment decreases the cash cycle . Increasing the accounts payable period increases the cash cycle . The longer the cash cycle , the more likely a firm will need external financing . The cash cycle can exceed the operating cycle if the payables period is equal to zero . Offering early payment discounts to customers will tend to increase the cash cycle . Precise Machinery is analyzing a proposed project . The company expects to sell 2100 units give or take 5 percent . The expected variable cost per unit is $ 260 and the expected fixed costs are $ 589,000 . Cost estimates are considered accurate within a plus or minus 4 percent range . The depreciation expense is $ 129,000 . The sales price is estimated at $ 750 per unit , give or take 2 percent . The tax rate is 35 percent . The company is conducting a sensitivity analysis on the sales price using a sales price estimate of $ 755 . What is the operating cash flow based on this analysis ? $ 86,675 $ 354,874 $ 368,015 $ 293,089 $ 337,975 You are doing some comparison shopping . Five stores offer the product you want at basically the same price but with differing credit terms . Which one of these terms is best-suited to you if you plan to forgo the discount ? 2 / 10 , net 30 2 / 5 , net 30 2 / 5 , net 20 1 / 10 , net 45 1 / 5 , net 15