accounts receivable period by 2.8 days and decrease the inventory period by 3.1 days . The accounts payable turnover rate is expected to increase from 9 to 11.5 times per year . If all of these changes are adopted , what will be the firm ' s new operating cycle ? 25 . On average , D & M sells its inventory in 37 days , collects on its receivables in 3.4 days , and takes 35 days to pay for its purchases . What is the length of the firm ’ s operating cycle ? 26 . A firm has an inventory turnover rate of 15.7 , a receivables turnover rate of 20.2 , and a payables turnover rate of 14.6 . How long is the cash cycle ? ************************************************************************************* FIN 571 Week 3 DQ 1
Why are interest rates on short-term loans not necessarily comparable to each other ? Give three possible reasons .
************************************************************************************* FIN 571 Week 3 DQ 2 FOR MORE CLASSES VISIT www . fin571tutor . com
Optical Supply Company offers credit terms of 2 / 10 , net 60 . If Optical Supply is considering a change in its credit terms to one of those indicated , explain whether the change should increase or decrease sales . ( a ) 2 / 10 , net 30 , ( b ) net 60 , ( c ) 3 / 15 , net 60 , ( d ) 2 / 10 , net 30 , 30 extra
accounts receivable period by 2.8 days and decrease the inventory period by 3.1 days . The accounts payable turnover rate is expected to increase from 9 to 11.5 times per year . If all of these changes are adopted , what will be the firm ' s new operating cycle ? 25 . On average , D & M sells its inventory in 37 days , collects on its receivables in 3.4 days , and takes 35 days to pay for its purchases . What is the length of the firm ’ s operating cycle ? 26 . A firm has an inventory turnover rate of 15.7 , a receivables turnover rate of 20.2 , and a payables turnover rate of 14.6 . How long is the cash cycle ? ************************************************************************************* FIN 571 Week 3 DQ 1
FOR MORE CLASSES VISIT www . fin571tutor . com
Why are interest rates on short-term loans not necessarily comparable to each other ? Give three possible reasons .
************************************************************************************* FIN 571 Week 3 DQ 2 FOR MORE CLASSES VISIT www . fin571tutor . com
Optical Supply Company offers credit terms of 2 / 10 , net 60 . If Optical Supply is considering a change in its credit terms to one of those indicated , explain whether the change should increase or decrease sales . ( a ) 2 / 10 , net 30 , ( b ) net 60 , ( c ) 3 / 15 , net 60 , ( d ) 2 / 10 , net 30 , 30 extra
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