FIN 571 TUTOR Motivated Minds/fin571tutor.com FIN 571 TUTOR Motivated Minds/fin571tutor.com | Page 54

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?
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FIN 571 Week 3 DQ 1
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Why are interest rates on short-term loans not necessarily
comparable to each other? Give three possible reasons.
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FIN 571 Week 3 DQ 2
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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